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Disability costs and equivalence scales in the older population

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  • Pudney, Stephen
  • Hancock, Ruth
  • Morciano, Marcello

Abstract

We estimate the implicit disability costs faced by older people, using data on over 8,000 individuals from the UK Family Resources Survey. We extend previous research by using a more flexible statistical modelling approach and by allowing for measurement error in observed disability and standard of living indicators. We find that disability costs are strongly related to the severity of disability and to income and – at an average level of almost £100 per week among over-65s with significant disability – they typically far exceed the value of any state disability benefits received.

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  • Pudney, Stephen & Hancock, Ruth & Morciano, Marcello, 2012. "Disability costs and equivalence scales in the older population," ISER Working Paper Series 2012-09, Institute for Social and Economic Research.
    • Handle: RePEc:ese:iserwp:2012-09
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    References listed on IDEAS

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    Cited by:

    1. Agovino, Massimiliano & Ferrara, Maria, 2015. "Disabilità e povertà: il ruolo delle pensioni di invalidità civile. Un'analisi DSGE per i dati italiani [Disability and poverty: the role of civilian disability pensions. A DSGE analysis for Italia," MPRA Paper 65616, University Library of Munich, Germany.
    2. Ruth Hancock & Marcello Morciano & Stephen Pudney & Francesca Zantomio, 2015. "Do household surveys give a coherent view of disability benefit targeting?: a multisurvey latent variable analysis for the older population in Great Britain," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 178(4), pages 815-836, October.
    3. Jäckle, Annette & Pudney, Stephen, 2015. "Survey response behaviour and the dynamics of self-reported health and disability: an experimental analysis," Understanding Society Working Paper Series 2015-05, Understanding Society at the Institute for Social and Economic Research.
    4. Davillas, Apostolos & Pudney, Stephen, 2020. "Biomarkers, disability and health care demand," Economics & Human Biology, Elsevier, vol. 39(C).
    5. Pudney, Stephen & Hancock, Ruth & Morciano, Marcello, 2013. "Nonparametric estimation of a compensating variation: the cost of disability," ISER Working Paper Series 2013-26, Institute for Social and Economic Research.
    6. Michael Palmer & Nora Groce & Daniel Mont & Oanh Hong Nguyen & Sophie Mitra, 2015. "The Economic Lives of People with Disabilities in Vietnam," PLOS ONE, Public Library of Science, vol. 10(7), pages 1-16, July.
    7. Massimiliano Agovino & Maria Ferrara, 2022. "Disabilit?: diseguaglianza sociale ed economica. Un?analisi empirica e teorica," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2022(1), pages 11-42.
    8. Massimiliano Agovino & Maria Ferrara, 2017. "Can civilian disability pensions overcome the poverty issue? A DSGE analysis for Italian data," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(4), pages 1469-1491, July.

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