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The distributional impact of public services in

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Abstract

The purpose of this paper is to study the impact of including the value of public health care, longterm care, education and childcare on estimates of income inequality and financial poverty in 23 European countries. The valuation of public services and the identification of target groups rely on group-specific accounting data for each of the 23 countries. To account for the fact that the receipt of public services like education and care for the elderly is associated with particular needs, we introduce a theory-based common equivalence scale for European countries, termed the needsadjusted EU scale (or NA scale). Even though the ranking of countries by estimates of overall inequality and poverty proves to be only slightly affected by the choice between the conventional EU scale and the NA scale, poverty estimates by household types are shown to be significantly affected by the choice of equivalence scale.

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  • Rolf Aaberge & Audun Langørgen & Petter Lindgren, 2013. "The distributional impact of public services in," Discussion Papers 746, Statistics Norway, Research Department.
  • Handle: RePEc:ssb:dispap:746
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    Cited by:

    1. Michelangeli, Alessandra & Peluso, Eugenio, 2016. "Cities and Inequality," REGION, European Regional Science Association, vol. 3, pages 47-60.
    2. Francesco Andreoli & Giorgia Casalone & Daniela Sonedda, 2015. "An empirical assessment of households sorting into private schooling under public education provision," Working Papers 356, ECINEQ, Society for the Study of Economic Inequality.
    3. Figari, Francesco & Paulus, Alari, 2013. "The distributional effects of taxes and transfers under alternative income concepts: the importance of three ‘I’s," EUROMOD Working Papers EM15/13, EUROMOD at the Institute for Social and Economic Research.
    4. Sabine Israel, 2016. "More than Cash: Societal Influences on the Risk of Material Deprivation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(2), pages 619-637, November.

    More about this item

    Keywords

    Income distribution; Poverty; Public services; In-kind transfers; Needs adjustment; Equivalence scales;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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