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The distributional impact of public services in

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  • Rolf Aaberge
  • Audun Langørgen
  • Petter Lindgren

    ()
    (Statistics Norway)

Abstract

The purpose of this paper is to study the impact of including the value of public health care, longterm care, education and childcare on estimates of income inequality and financial poverty in 23 European countries. The valuation of public services and the identification of target groups rely on group-specific accounting data for each of the 23 countries. To account for the fact that the receipt of public services like education and care for the elderly is associated with particular needs, we introduce a theory-based common equivalence scale for European countries, termed the needsadjusted EU scale (or NA scale). Even though the ranking of countries by estimates of overall inequality and poverty proves to be only slightly affected by the choice between the conventional EU scale and the NA scale, poverty estimates by household types are shown to be significantly affected by the choice of equivalence scale.

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Bibliographic Info

Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 746.

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Date of creation: Jun 2013
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Handle: RePEc:ssb:dispap:746

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Keywords: Income distribution; Poverty; Public services; In-kind transfers; Needs adjustment; Equivalence scales;

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References

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  23. Gerlinde Verbist & Michael F. Förster & Maria Vaalavuo, 2012. "The Impact of Publicly Provided Services on the Distribution of Resources: Review of New Results and Methods," OECD Social, Employment and Migration Working Papers 130, OECD Publishing.
  24. Shorrocks, Anthony, 2004. "Inequality and Welfare Evaluation of Heterogeneous Income Distributions," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
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