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The Personal Distribution of Income and Imputed Rent: A Cross-National Comparison for the UK, West Germany and the USA

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Author Info
Joachim R. Frick
Markus M. Grabka

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Abstract

This article deals with income advantages derived from owner occupied housing (Imputed Rent, IR) and their impact on the personal income distribution. Following a brief description of different methods with which to calculate IR in household surveys, we conduct a cross-national comparative study based on micro-data from the British Household Panel Study (BHPS), the German Socio- Economic Panel (SOEP), and the US Panel Study of Income Dynamics (PSID). We find distinct differences between the Anglo-Saxon countries and Germany in terms of prevalence and extent of IR as well as in terms of the impact on the overall income distribution. In all three countries, however, using IR in measures of old age provision improves the quality of economic well-being assessment for the elderly.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.38495.de/dp271.pdf
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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 271.

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Length: 21 p.
Date of creation: 2002
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Handle: RePEc:diw:diwwpp:dp271

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Related research
Keywords: Personal Income Distribution; Owner Occupied Housing; Imputed Rent; Old Age Provision;

Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
R21 - Urban, Rural, and Regional Economics - - Household Analysis - - - Housing Demand

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Wolfe, Barbara L & Moffitt, Robert, 1991. "A New Index to Value In-Kind Benefits," Review of Income and Wealth, Blackwell Publishing, vol. 37(4), pages 387-408, December.
  2. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Anna Fräßdorf & Markus M. Grabka & Johannes Schwarze, 2008. "The Impact of Household Capital Income on Income Inequality: A Factor Decomposition Analysis for Great Britain, Germany and the USA," SOEPpapers 104, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
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This page was last updated on 2009-12-2.

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