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A European equivalence scale for public in-kind transfers

Author

Listed:
  • Rolf Aaberge

    (University of Oslo
    Statistics Norway and University of Oslo)

  • Audun Langørgen

    (Statistics Norway)

  • Petter Y. Lindgren

    (Statistics Norway)

Abstract

This paper introduces a theory-based equivalence scale for public in-kind transfers, which justifies comparison of distributions of extended income (cash income plus the value of public services) between European countries. We demonstrate the usefulness of the proposed equivalence scale in an empirical analysis of the effects of public health care, long-term care, education and childcare expenditure on estimates of income inequality and poverty for 24 European countries. The empirical results show significant effects of public in-kind transfers on the level of income inequality and poverty for all countries. Over the period 2006–2018, inequality and poverty estimates display rather different trends across European countries.

Suggested Citation

  • Rolf Aaberge & Audun Langørgen & Petter Y. Lindgren, 2024. "A European equivalence scale for public in-kind transfers," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 22(1), pages 1-32, March.
    • Handle: RePEc:spr:joecin:v:22:y:2024:i:1:d:10.1007_s10888-023-09586-6
    DOI: 10.1007/s10888-023-09586-6
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    Keywords

    Income distribution; Poverty; Equivalence scales; Relative needs; Public services; Public in-kind transfers;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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