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The Personal Distribution of Income and Imputed Rent: A Cross-National Comparison for the UK, West Germany and the USA

  • Joachim R. Frick
  • Markus M. Grabka

This article deals with income advantages derived from owner occupied housing (Imputed Rent, IR) and their impact on the personal income distribution. Following a brief description of different methods with which to calculate IR in household surveys, we conduct a cross-national comparative study based on micro-data from the British Household Panel Study (BHPS), the German Socio- Economic Panel (SOEP), and the US Panel Study of Income Dynamics (PSID). We find distinct differences between the Anglo-Saxon countries and Germany in terms of prevalence and extent of IR as well as in terms of the impact on the overall income distribution. In all three countries, however, using IR in measures of old age provision improves the quality of economic well-being assessment for the elderly.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.38495.de/dp271.pdf
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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 271.

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Length: 21 p.
Date of creation: 2002
Date of revision:
Handle: RePEc:diw:diwwpp:dp271
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  1. Joachim R. Frick & Markus M. Grabka, 2001. "Der Einfluß von Imputed Rent auf die personelle Einkommensverteilung," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 221(3), pages 285-308.
  2. Yates, Judith, 1994. "Imputed Rent and Income Distribution," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(1), pages 43-66, March.
  3. repec:ese:iserwp:2000-33 is not listed on IDEAS
  4. Wolfe, Barbara L & Moffitt, Robert, 1991. "A New Index to Value In-Kind Benefits," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(4), pages 387-408, December.
  5. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June.
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