Advanced Search
MyIDEAS: Login

Changes in the characteristics of Spanish poor households: the case of Imputed Rent

Contents:

Author Info

  • Jose Calvo
  • Cristina S√°nchez
Registered author(s):

    Abstract

    Poverty has been an important area of study in Spain for a long period of time. Many authors have analyzed the number and characteristics of Spanish poor population. Nevertheless, one of the most important criticisms to Spanish studies is related to the variable selected to proxy household’s income. Until 2007 the Survey on Income and Living Conditions (SILC) did not include an estimation of the value of house’s ownership. The lack of that estimation could provoke biased results at least by two ways: it underestimates some incomes and, at the same time, it affects families’ distribution around the poverty line. In 2007 this variable, called Imputed Rent (IMRENT), was calculated for the first time in Spain. Therefore, it was possible to use it and compare the results obtained following the traditional methodology or introducing a new calculation of Income per Unit of Equivalent Consumption in Spanish households taking into account IMRENT. We present a descriptive analysis and a probit estimation to calculate the probability of leaving poverty when the variable is considered. The results show the relevance of this proxy to households’ wealth since its incorporation change the profile of Spanish poor: if we do not consider it most people older than 65 years are under poverty line, especially women. But if we include it a big share of widows and retired people cross the border and leave poverty. There is a clear economic policy implication: in the actual situation, with problems to finance Public Pensions’ System, it should be necessary to take into account not only current income but wealth to calculate Spanish widow’s and retirement pensions. We also obtain a positive effect of been the house owners or if the family is paying a mortgage.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa10/ERSA2010finalpaper130.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa10p130.

    as in new window
    Length:
    Date of creation: Sep 2011
    Date of revision:
    Handle: RePEc:wiw:wiwrsa:ersa10p130

    Contact details of provider:
    Postal: Welthandelsplatz 1, 1020 Vienna, Austria
    Web page: http://www.ersa.org

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa10p130. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.