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Der Einfluß von Imputed Rent auf die personelle Einkommensverteilung. The Impact of Imputed Rent on the Personal Distribution of Income

  • Frick Joachim R.

    ()

    (DIW Berlin, Königin-Luise-Str. 5, D-14195 Berlin)

  • Grabka Markus M.

    ()

    (M. A., DIW Berlin, Königin-Luise-Str. 5, D-14195 Berlin)

This article deals with various methods concerning income advantages of owner occupied housing (imputed rental value or imputed rents), which shows to be one of the most important nonmonetary income components. We also explore the effects of such advantages on the personal distribution of income. Following a description of the theoretical aspects of the various methods as well as their advantages and disadvantages, an empirical study based on the micro-data of the German Socio-Economic Panel (SOEP) is then presented. In conclusion, recommendations for taking imputed rent into account in analysis of the distribution of individual income and income mobility are given, based on the theoretical framework and the empirical results of this study. Most important results of our analysis include (a) a slight decrease in overall income inequality due to the inclusion of imputed rent, and (b) a positive income advantage for the elderly, thus confirming the specific role of owner occupied housing as a means of old age provision.

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Article provided by De Gruyter in its journal Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik).

Volume (Year): 221 (2001)
Issue (Month): 3 (June)
Pages: 285-308

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Handle: RePEc:jns:jbstat:v:221:y:2001:i:3:p:285-308
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