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Noncash Benefits and Income Distribution

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  • Elisabeth Steckmest

Abstract

This report gives the results derived from a cross-sectional analysis of the distributional effects of noncash benefits in four countries. The results of the Norwegian data suggest that the distribution of benefits influences the relative income position of household groups. The main beneficiaries of the free education system in Norway are, not surprisingly, households with children. Noncash health benefits particularly improve the situation of the elderly. When the income measures are adjusted for household size and composition, the spread in relative mean income across the different groups is reduced. To measure the impact of income inequality the authors use income per decile group before and after the inclusion of in-kind benefits. Looking at the population as a whole, it is found that households in the bottom of the distribution receive more than those at the top. Disaggregating the population by household types, the authors find that for certain types, mainly families with children, cash income is correlated with noncash income.

Suggested Citation

  • Elisabeth Steckmest, 1996. "Noncash Benefits and Income Distribution," LIS Working papers 150, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:150
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    1. Victor, Christina R. & Vetter, Norman J., 1986. "Poverty, disability and use of services by the elderly: Analysis of the 1980 general household survey," Social Science & Medicine, Elsevier, vol. 22(10), pages 1087-1091, January.
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    Cited by:

    1. Alari Paulus & Holly Sutherland & Panos Tsakloglou, 2010. "The distributional impact of in-kind public benefits in European countries," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 243-266.
    2. Tim Callan & Tim Smeeding & Panos Tsakloglou, 2008. "Short-run distributional effects of public education transfers to tertiary education students in seven European countries," Education Economics, Taylor & Francis Journals, vol. 16(3), pages 275-288.
    3. Simone Salotti & Carmine Trecroci, 2018. "Cross-country evidence on the distributional impact of fiscal policy," Applied Economics, Taylor & Francis Journals, vol. 50(51), pages 5521-5542, November.
    4. Tim Callan & Tim Smeeding & Panos Tsakloglou, 2007. "Distributional Effects of Public Education Transfers in Seven European Countries," Papers WP207, Economic and Social Research Institute (ESRI).

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