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Non-cash Income, Living Standards and Inequality: Evidence from the Luxembourg Income Study

In: Economics in a Changing World

Author

Listed:
  • Peter Saunders

    (University of New South Wales)

  • Timothy M. Smeeding

    (Syracuse University Luxembourg Income Study)

  • John Coder

    (Bureau of the Census)

  • Stephen Jenkins

    (University of Swansea)

  • Johan Fritzell

    (University of Stockholm)

  • Aldi J. M. Hagenaars

    (Erasmus University)

  • Richard Hauser

    (University of Frankfurt)

  • Michael Wolfson

    (Statistics Canada)

Abstract

The economic well-being of households is determined by their resources relative to their measurable economic needs. Economic resources include both cash and non-cash income. While after-tax cash income is the most widely employed measure of household economic well-being, it may exclude considerable amounts of resources received in a non-cash form. These include health care, education, housing, food and other subsidies from governments; production for own consumption by farmers, peasants and other individuals living mainly in rural areas and small towns; and in-kind transfers received from relatives, friends and others in the form of food, clothing and/or shelter. Moreover the distribution of these non-cash resources may vary systematically by population subgroup, thus affecting measures of relative economic well-being within and between households. They may also differ systematically by country. They almost certainly differ by regime, for example in the post-communist reforming socialist economies (RSEs) as compared with Western European and other Western nations.2

Suggested Citation

  • Peter Saunders & Timothy M. Smeeding & John Coder & Stephen Jenkins & Johan Fritzell & Aldi J. M. Hagenaars & Richard Hauser & Michael Wolfson, 1993. "Non-cash Income, Living Standards and Inequality: Evidence from the Luxembourg Income Study," International Economic Association Series, in: Dieter Bös (ed.), Economics in a Changing World, chapter 11, pages 198-217, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-22988-8_11
    DOI: 10.1007/978-1-349-22988-8_11
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    Cited by:

    1. Frick, Joachim R. & Grabka, Markus M., 2001. "Der Einfluß von Imputed Rent auf die personelle Einkommensverteilung," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 221(3), pages 285-308.
    2. Olli Kangas & Veli-Matti Ritakallio, 2004. "Relative to What? Cross-national Picture of European Poverty Measured by Regional, National and European Standards," LIS Working papers 384, LIS Cross-National Data Center in Luxembourg.
    3. Rune Ervik, 1998. "The Redistributive Aim of Social Policy: A Comparative Analysis of Taxes, Tax Expenditure Transfers and Direct Transfers in Eight Countries," LIS Working papers 184, LIS Cross-National Data Center in Luxembourg.
    4. Figari, Francesco & Paulus, Alari & Sutherland, Holly & Tsakloglou, Panos & Verbist, Gerlinde & Zantomio, Francesca, 2012. "Taxing Home Ownership: Distributional Effects of Including Net Imputed Rent in Taxable Income," IZA Discussion Papers 6493, Institute of Labor Economics (IZA).
    5. Peter Whiteford, 1997. "Measuring Poverty and Income Inequality in Australia," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 4(1), pages 39-50.

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