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On the Road to Equity: Examining Income-Related Inequalities in Ownership of Safer Vehicles

Author

Listed:
  • Carrieri, Vincenzo

    (University of Calabria)

  • Davillas, Apostolos

    (University of Macedonia)

  • de Oliveira, Victor Hugo

    (Instituto de Pesquisa e Estratégia Econômica do Ceará (IPECE))

Abstract

Using administrative DVLA data matched with micro-data from Understanding Society – the UK Household Longitudinal Study we estimate income-related inequalities in ownership of vehicles with a set of safety features and we apply a regression-based decomposition method for rank-dependent inequality measures to estimate the source of inequalities. We find systematic pro-rich inequalities in ownership of passively safer vehicles that are almost entirely explained by the characteristics of the vehicles, mainly their price and year of manufacture. A wide range of variables measured at the household level including demographics, risk aversion and time preference proxies, personality traits, cognitive ability, and education plays a much less pronounced and, in most cases, non-statistically significant contribution to overall inequality. These findings reveal inequity in access to passively safer vehicles with potential effects on the socio-economic gap in road-traffic injuries and mortality rates, requiring regulatory intervention.

Suggested Citation

  • Carrieri, Vincenzo & Davillas, Apostolos & de Oliveira, Victor Hugo, 2023. "On the Road to Equity: Examining Income-Related Inequalities in Ownership of Safer Vehicles," IZA Discussion Papers 16049, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16049
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    References listed on IDEAS

    as
    1. Cawley, John & Ruhm, Christopher J., 2011. "The Economics of Risky Health Behaviors," Handbook of Health Economics, in: Mark V. Pauly & Thomas G. Mcguire & Pedro P. Barros (ed.), Handbook of Health Economics, volume 2, chapter 0, pages 95-199, Elsevier.
    2. Nejat Anbarci & Monica Escaleras & Charles A. Register, 2009. "Traffic fatalities: does income inequality create an externality?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(1), pages 244-266, February.
    3. Paul Contoyannis & Martin Forster, 1999. "‘Our healthier nation’?," Health Economics, John Wiley & Sons, Ltd., vol. 8(4), pages 289-296, June.
    4. Choo, Sangho & Mokhtarian, Patricia L., 2004. "What type of vehicle do people drive? The role of attitude and lifestyle in influencing vehicle type choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 38(3), pages 201-222, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    income inequalities; car's safety; concentration indexes; United Kingdom;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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