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A Monetary Approach to Capability Measurement of the Disabled - Evidence from the UK

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  • Wiebke Kuklys

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    Abstract

    In this paper we attempt to assess empirically the capability set of the disabled. We formulate the assumptions under which capability can be interpreted as needs-adjusted disposable household income, and use equivalence scales methodology to estimate it for households in the UK. We identify a positive cost of disability to the households and state, to what extent a disability can reduce an individual's capability set. The use of the derived capability measure instead of traditional income in poverty measures leads to a dramatic increase of poverty among the families with disabled members.

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    File URL: ftp://papers.econ.mpg.de/esi/discussionpapers/2004-08.pdf
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    Bibliographic Info

    Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number 2004-08.

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    Length: 30 pages
    Date of creation: Feb 2004
    Date of revision:
    Handle: RePEc:esi:discus:2004-08

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    Keywords: capability; disability; equivalence scale; psychometric; poverty;

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    1. Asghar Zaidi & Tania Burchardt, 2005. "Comparing Incomes When Needs Differ: Equivalization For The Extra Costs Of Disability In The U.K," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(1), pages 89-114, 03.
    2. Andrew Jones & Owen O'Donnell, . "Equivalence Scales and the Costs of Disability," Discussion Papers 94/12, Department of Economics, University of York.
    3. Van Praag, Bernard, 1971. "The welfare function of income in Belgium: An empirical investigation," European Economic Review, Elsevier, vol. 2(3), pages 337-369.
    4. Tania Burchardt & Julian Le Grand, 2002. "Constraint and Opportunity: Identifying Voluntary Non-Employment," CASE Papers case55, Centre for Analysis of Social Exclusion, LSE.
    5. Asghar Zaidi & Tania Burchardt, 2003. "Comparing incomes when needs differ: equivalisation for the extra costs of disability in the UK," LSE Research Online Documents on Economics 6373, London School of Economics and Political Science, LSE Library.
    6. Alkire, Sabina, 2002. "Valuing Freedoms: Sen's Capability Approach and Poverty Reduction," OUP Catalogue, Oxford University Press, number 9780199245796, September.
    7. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Differences in Needs and Assessment of Income Distributions," Bulletin of Economic Research, Wiley Blackwell, vol. 44(2), pages 77-124, April.
    8. Pollak, Robert A & Wales, Terence J, 1979. "Welfare Comparisons and Equivalence Scales," American Economic Review, American Economic Association, vol. 69(2), pages 216-21, May.
    9. BLACKORBY, Charles & BOSSERT, Walter, 2004. "Interpersonal Comparisons of Well-Being," Cahiers de recherche 06-2004, Centre interuniversitaire de recherche en ├ęconomie quantitative, CIREQ.
    10. Melenberg, B. & Soest, A.H.O. van, 1996. "Measuring the costs of children: Parametric and semiparametric estimators," Open Access publications from Tilburg University urn:nbn:nl:ui:12-72215, Tilburg University.
    11. Federico Perali, 2002. "Some curiosites about the Engel method to estimate equivalence scales," Economics Bulletin, AccessEcon, vol. 4(9), pages 1-7.
    12. repec:att:wimass:9217 is not listed on IDEAS
    13. van Praag, Bernard M S & Hagenaars, Aldi J M & van Weeren, Hans, 1982. "Poverty in Europe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 28(3), pages 345-59, September.
    14. Tania Burchardt & Julian Le Grand, 2002. "Constraint and opportunity: identifying voluntary non-employment," LSE Research Online Documents on Economics 51317, London School of Economics and Political Science, LSE Library.
    15. Bellemare, C. & Melenberg, B. & Soest, A.H.O. van, 2002. "Semi-parametric Models for Satisfaction with Income," Discussion Paper 2002-87, Tilburg University, Center for Economic Research.
    16. Tania Burchardt & Julian Le Grand, 2002. "Constraint and opportunity: identifying voluntary non-employment," LSE Research Online Documents on Economics 4650, London School of Economics and Political Science, LSE Library.
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