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Non-cash Benefits and the Distribution of Economic Welfare

Author

Listed:
  • Callan, Tim

    (Economic and Social Research Institute, Dublin)

  • Keane, Claire

    (Economic and Social Research Institute, Dublin)

Abstract

Non-cash benefits can have substantial effects on the distribution of economic welfare. Standard approaches to the inclusion of non-cash benefits in broader measures of resources have failed to take adequate account of the pattern of needs associated with the greater use of health and education services. Our results, for Ireland in the year 2000, show that it is possible to derive more appropriate measures of total resources than have been derived using standard methods. The results indicate that the greatest impact comes from the inclusion of imputed rent for owner occupation as part of the resource measure. When this is done, the rate of “resource poverty” for older people is substantially reduced, in line with results which use indicators of standard of living as well as cash incomes (“consistent poverty”).

Suggested Citation

  • Callan, Tim & Keane, Claire, 2009. "Non-cash Benefits and the Distribution of Economic Welfare," The Economic and Social Review, Economic and Social Studies, vol. 40(1), pages 49-71.
  • Handle: RePEc:eso:journl:v:40:y:2009:i:1:p:49-71
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    References listed on IDEAS

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    Cited by:

    1. Guillaume Allègre & Thomas Melonio & Xavier Timbeau, 2012. "Dépenses publiques d'éducation et inégalités. Une perspective de cycle de vie," Revue économique, Presses de Sciences-Po, vol. 63(6), pages 1055-1079.
    2. Callan, Tim & Keane, Claire & Savage, Michael & Walsh, John R., 2013. "Distributional Impact of Tax, Welfare and Public Service Pay Policies: Budget 2014 and Budgets 2009-2014," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI).
    3. Brian Nolan & Bertrand Maitre & Sarah Voitchovsky & Christopher Whelan, 2012. "GINI DP 70: Inequality and Poverty in Boom and Bust: Ireland as a Case Study," GINI Discussion Papers 70, AIAS, Amsterdam Institute for Advanced Labour Studies.
    4. repec:spr:epolit:v:34:y:2017:i:3:d:10.1007_s40888-016-0052-0 is not listed on IDEAS
    5. Ive Marx & Brian Nolan & Javier Olivera, 2014. "The Welfare State and Anti-Poverty Policy in Rich Countries," Working Papers 1403, Herman Deleeck Centre for Social Policy, University of Antwerp.
    6. Cathal O’Donoghue & Jason Loughrey & Karyn Morrissey, 2013. "Using the EU-SILC to model the impact of the economic crisis on inequality," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), pages 1-26.
    7. repec:esr:qecsas:2016:winter:callan is not listed on IDEAS
    8. Simone Pellegrino & Massimiliano Piacenza & Gilberto Turati, 2011. "Assessing the Distributional Effects of Housing Taxation in Italy: From the Actual Tax Code to Imputed Rent," CESifo Working Paper Series 3368, CESifo Group Munich.
    9. Christos Koutsampelas & Panos Tsakloglou, 2012. "The distribution of full income in Greece," University of Cyprus Working Papers in Economics 03-2012, University of Cyprus Department of Economics.
    10. Tess Penne & Irene Cussó Parcerisas & Lauri Mäkinen & Bérénice Storms & Tim Goedemé, 2016. "Can reference budgets be used as a poverty line?," ImPRovE Working Papers 16/05, Herman Deleeck Centre for Social Policy, University of Antwerp.
    11. Taran Fæhn, Cathrine Hagem, Lars Lindholt, Ståle Mæland, and Knut Einar Rosendahl, 2017. "Climate policies in a fossil fuel producing country demand versus supply side policies," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    12. Christos Koutsampelas, 2013. "The distribution of full income in Greece," International Journal of Social Economics, Emerald Group Publishing, vol. 40(4), pages 311-330, March.
    13. Duffy, David & FitzGerald, John & Timoney, Kevin & Byrne, David, 2013. "Quarterly Economic Commentary, Winter 2013," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC20134.
    14. Hillringhaus, Tilman & Peichl, Andreas, 2010. "Die Messung von Armut unter Berücksichtigung regional divergierender Lebenshaltungskosten und öffentlicher Leistungen," IZA Discussion Papers 5344, Institute for the Study of Labor (IZA).
    15. Verbist, G. (Gerlinde) & Matsaganis, M. (Manos), 2012. "GINI DP 53: The Redistributive Capacity of Services in the EU," GINI Discussion Papers 53, AIAS, Amsterdam Institute for Advanced Labour Studies.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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