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The distribution of full income in Greece

Author

Listed:
  • Christos Koutsampelas
  • Panos Tsakloglou

Abstract

Purpose - The purpose of this paper is to examine the distributional implications of using full income instead of disposable income in the analysis of economic inequality. For that purpose the authors employ a very extensive list of noncash incomes with the aim of examining the distributional effects of noncash incomes and reassessing the level and structure of inequality under a comprehensive definition of income. Design/methodology/approach - The study employs the microdata of the 2004/2005 Greek Household Budget Survey. The value of non-monetary components was estimated using the appropriate statistical methods and econometric techniques. Tools of income distribution analysis were utilized for assessing the distributional consequences of adopting an extended definition of income. Findings - The results indicate that both private and public noncash incomes are far more equally distributed than monetary income, but the inequality-reducing effect of publicly-provided services is stronger. Noncash incomes appear to accrue more heavily to younger and older individuals. Research limitations/implications - The analysis uses the same equivalence scales for the analysis of both monetary income and full income. This treatment may be open to criticism in the case of in-kind public transfers. Due to data limitations the authors do not take into account home-produced services, as well as several in-kind transfers such as the provision of elderly care. Practical implications - The study argues in favor of moving beyond disposable income for measuring inequality and for the purposes of social policy design. Originality/value - Even if several studies take into account particular noncash items, there is an important void in the distributional analysis of full income.

Suggested Citation

  • Christos Koutsampelas & Panos Tsakloglou, 2013. "The distribution of full income in Greece," International Journal of Social Economics, Emerald Group Publishing, vol. 40(4), pages 311-330, March.
  • Handle: RePEc:eme:ijsepp:v:40:y:2013:i:4:p:311-330
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Andriopoulou, Eirini & Karakitsios, Alexandros & Tsakloglou, Panos, 2017. "Inequality and poverty in Greece: Changes in times of crisis," GLO Discussion Paper Series 119, Global Labor Organization (GLO).
    2. Stockhausen, Maximilian, 2016. "The Impact of Private and Public Childcare Provision on the Distribution of Children's Incomes in Germany," Annual Conference 2016 (Augsburg): Demographic Change 145638, Verein für Socialpolitik / German Economic Association.
    3. repec:bla:tvecsg:v:107:y:2016:i:5:p:628-641 is not listed on IDEAS
    4. Christos Koutsampelas, 2012. "Immigration and Poverty: Findings from Cyprus," University of Cyprus Working Papers in Economics 13-2012, University of Cyprus Department of Economics.
    5. Maximilian Stockhausen, 2017. "The Distribution of Economic Resources to Children in Germany," SOEPpapers on Multidisciplinary Panel Data Research 901, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. repec:spr:lsprsc:v:11:y:2018:i:2:d:10.1007_s12076-018-0204-7 is not listed on IDEAS
    7. Rolf Aaberge & Audun Langørgen & Petter Lindgren, 2013. "The distributional impact of public services in," Discussion Papers 746, Statistics Norway, Research Department.

    More about this item

    Keywords

    Greece; Social policy; Income; Cash; Income distribution; Imputed rents; In-kind public transfers;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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