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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. Charles Bellemare & Bertrand Melenberg & Arthur van Soest, 2002. "Semi-parametric models for satisfaction with income," CeMMAP working papers CWP12/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    2. BLACKORBY, Charles & BOSSERT, Walter, 2004. "Interpersonal Comparisons of Well-Being," Cahiers de recherche 06-2004, Centre interuniversitaire de recherche en ├ęconomie quantitative, CIREQ.
    3. Federico Perali, 2002. "Some curiosites about the Engel method to estimate equivalence scales," Economics Bulletin, AccessEcon, vol. 4(9), pages 1-7.
    4. 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.
    5. 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.
    6. Tania Burchardt & Julian Le Grand, 2002. "Constraint and Opportunity: Identifying Voluntary Non-Employment," CASE Papers case55, Centre for Analysis of Social Exclusion, LSE.
    7. Van Praag, Bernard, 1971. "The welfare function of income in Belgium: An empirical investigation," European Economic Review, Elsevier, vol. 2(3), pages 337-369.
    8. 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.
    9. repec:att:wimass:9217 is not listed on IDEAS
    10. Andrew Jones & Owen O'Donnell, . "Equivalence Scales and the Costs of Disability," Discussion Papers 94/12, Department of Economics, University of York.
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    15. Alkire, Sabina, 2005. "Valuing Freedoms: Sen's Capability Approach and Poverty Reduction," OUP Catalogue, Oxford University Press, number 9780199283316, Octomber.
    16. 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.
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