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Measuring living standards with income and consumption: evidence from the UK

Author

Listed:
  • Mike Brewer

    (Institute for Fiscal Studies and Resolution Foundation)

  • Cormac O'Dea

    (Institute for Fiscal Studies and Yale University)

Abstract

This paper compares consumption and income as measures of households’ living standards using UK data. It presents evidence that income is likely to be under-recorded for households with low resources. It describes the different impressions one gets about trends in the level and inequality of living standards in the UK when using consumption, and when one adds an imputed income from housing, rather than near-cash income. It describes what different impressions one gets about the composition of households with low living standards if these are identified with consumption rather than income.

Suggested Citation

  • Mike Brewer & Cormac O'Dea, 2012. "Measuring living standards with income and consumption: evidence from the UK," IFS Working Papers W12/12, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:ifsewp:12/12
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    File URL: http://www.ifs.org.uk/wps/wp1212.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    consumption; measuring living standards; inequality; poverty;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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