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Households, Standard of Living, and Inequality

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  • Ringen, Stein

Abstract

The standard of living of individuals does not depend so much on the income they themselves earn as on the total income of the household to which they belong and how the household organizes the use of its income. It is important to develop methods of income analysis which incorporate the household factor. In income distribution analysis, it is now common to take into consideration household size and composition in relative interpretations of income levels. In this paper it is suggested that the same methodology can be used for the purpose of absolute interpretations of income levels. The result is an alternative to per capita measures of standard of living which is sensitive not only to national income and population size, but also to household formation. This approach is applied to Norwegian data for the period from 1970 to 1986 as to trends in the average standard of living and standard of living inequality, and the redistributive impact of transfer and tax policies. Copyright 1991 by The International Association for Research in Income and Wealth.

Suggested Citation

  • Ringen, Stein, 1991. "Households, Standard of Living, and Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(1), pages 1-13, March.
  • Handle: RePEc:bla:revinw:v:37:y:1991:i:1:p:1-13
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    Cited by:

    1. Meenakshi, J. V. & Ray, Ranjan, 2002. "Impact of household size and family composition on poverty in rural India," Journal of Policy Modeling, Elsevier, vol. 24(6), pages 539-559, October.
    2. Koen Caminada & Kees Goudswaard, 2001. "International Trends in Income Inequality and Social Policy," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 8(4), pages 395-415, August.
    3. Bruce Headey & Stephen Headey & Ruud Muffels & Carla Janssen, 2004. "Who Enjoys the Fruits of Growth? Impact of Governments and Markets on Living Standards in Germany, The Netherlands and the U.S.A., 1987–1996," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 65(2), pages 125-144, January.
    4. B. Douglas Bernheim & Katherine Grace Carman & Jagadeesh Gokhale & Laurence J. Kotlikoff, 2001. "The Mismatch Between Life Insurance Holdings and Financial Vulnerabilities: Evidence from the Survey of Consumer Finances," NBER Working Papers 8544, National Bureau of Economic Research, Inc.
    5. Chen Wang & Kees Goudswaard & Koen Caminada, 2012. "Disentangling Income Inequality and the Redistributive Effect of Taxes and Transfers in 20 LIS Countries Over Time Evidence from the LIS Data," LIS Working papers 581, LIS Cross-National Data Center in Luxembourg.
    6. A. B. Atkinson, 2003. "Income Inequality in OECD Countries: Data and Explanations," CESifo Economic Studies, CESifo, vol. 49(4), pages 479-513.
    7. Juan A. Rojas, 2004. "On the Interaction between Education and Social Security," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(4), pages 932-957, October.
    8. B. Douglas Bernheim & Lorenzo Forni & Jagadeesh Gokhale & Laurence J. Kotlikoff, 2003. "The Mismatch Between Life Insurance Holdings and Financial Vulnerabilities: Evidence from the Health and Retirement Study," American Economic Review, American Economic Association, vol. 93(1), pages 354-365, March.
    9. Koen Caminada & Kees Goudswaard, 2005. "Are Public and Private Social Expenditures Complementary?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 11(2), pages 175-189, May.
    10. Bruce Headey & Stephen Headey & Ruud Muffels, 2001. "(Not) Sharing the Fruits of Growth: The Impact of Governments and Markets on Living Standards in Germany, the Netherlands, and the United States," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 115-122.
    11. B. Douglas Bernheim & Lorenzo Forni & Jagadeesh Gokhale & Laurence J. Kotlikoff, 2001. "The mismatch between life insurance holdings and financial vulnerabilities: evidence from the Health and Retirement Survey," Working Paper 0109, Federal Reserve Bank of Cleveland.
    12. B. Douglas Bernheim & Lorenzo Forni & Jagadeesh Gokhale & Laurence J. Kotlikoff, 1999. "The adequacy of life insurance: evidence from the health and retirement survey," Working Paper 9914, Federal Reserve Bank of Cleveland.
    13. Robert E. Goodin & Bruce Headey & Ruud Muffels, 1997. "Poverty, Inequality, and Income Redistribution in the 'Three Worlds of Welfare Capitalism: United States, Germany, and the Netherlands, 1985 to 1989," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 66(1), pages 92-101.
    14. Bruce Headey & Ruud Muffels, 2008. "Do Generous Welfare States Generate Efficiency Gains which Counterbalance Short Run Losses? Testing Downside Risk Theory with Economic Panel Data for the U.S., Germany and The Netherlands," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 86(2), pages 337-354, April.
    15. Frank A Cowell & Magda Mercader-Prats, 1997. "Equivalence of Scales and Inequality (published in Income Inequality Measurement:From Theory to Practice, J Silber (ed), Dewenter: Kluver (1999)," STICERD - Distributional Analysis Research Programme Papers 27, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    16. Cowell, Frank & Mercader-Prats, Magda, 1999. "Equivalence scales and inequality," LSE Research Online Documents on Economics 2190, London School of Economics and Political Science, LSE Library.
    17. repec:eco:journ1:2017-02-68 is not listed on IDEAS
    18. Peter Krause & Bruce Headey, 1995. "Rich and Poor: Stability or Change?: West German Income Mobility 1984-93," Discussion Papers of DIW Berlin 126, DIW Berlin, German Institute for Economic Research.

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