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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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  • Joachim R. Frick
  • Markus M. Grabka

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.

Suggested Citation

  • Joachim R. Frick & Markus M. Grabka, 2002. "The Personal Distribution of Income and Imputed Rent: A Cross-National Comparison for the UK, West Germany and the USA," Discussion Papers of DIW Berlin 271, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp271
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    References listed on IDEAS

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    1. Frick Joachim R. & Grabka Markus M., 2001. "Der Einfluß von Imputed Rent auf die personelle Einkommensverteilung. The Impact of Imputed Rent on the Personal Distribution of Income," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 221(3), pages 285-308, June.
    2. Barbara Wolfe & Robert Moffitt, 1991. "A New Index To Value In‐Kind Benefits," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(4), pages 387-408, December.
    3. Judith Yates, 1994. "Imputed Rent And Income Distribution," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(1), pages 43-66, March.
    4. P. Jenkins, Stephen & Bardasi, Elena & A. Rigg, John, 2000. "Retirement and the economic well-being of the elderly: a British perspective," ISER Working Paper Series 2000-33, Institute for Social and Economic Research.
    5. 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.
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    Cited by:

    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," Working Papers 89, ECINEQ, Society for the Study of Economic Inequality.
    2. Kerr, William R., 2014. "Income inequality and social preferences for redistribution and compensation differentials," Journal of Monetary Economics, Elsevier, vol. 66(C), pages 62-78.
    3. Gerencia de Riesgo Asobancaria, 2011. "Estimación de la Carga Financiera en Colombia," Temas de Estabilidad Financiera 056, Banco de la Republica de Colombia.
    4. Fritzsche, Bernd & Haisken-DeNew, John P., 2004. "Lebensstandarddefizite bei Erwerbstätigen (Working Poor): Forschungsprojekt des Bundesministeriums für Gesundheit und Soziale Sicherung. AZ 534-52061-15. Endbericht," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 69975.
    5. Kerr, William R., 2014. "Income inequality and social preferences for redistribution and compensation differentials," Journal of Monetary Economics, Elsevier, vol. 66(C), pages 62-78.
    6. repec:zbw:bofrdp:2013_031 is not listed on IDEAS

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    More about this item

    Keywords

    Personal Income Distribution; Owner Occupied Housing; Imputed Rent; Old Age Provision;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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