IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa10p130.html
   My bibliography  Save this paper

Changes in the characteristics of Spanish poor households: the case of Imputed Rent

Author

Listed:
  • Jose Calvo
  • Cristina Sánchez

Abstract

Poverty has been an important area of study in Spain for a long period of time. Many authors have analyzed the number and characteristics of Spanish poor population. Nevertheless, one of the most important criticisms to Spanish studies is related to the variable selected to proxy household's income. Until 2007 the Survey on Income and Living Conditions (SILC) did not include an estimation of the value of house's ownership. The lack of that estimation could provoke biased results at least by two ways: it underestimates some incomes and, at the same time, it affects families' distribution around the poverty line. In 2007 this variable, called Imputed Rent (IMRENT), was calculated for the first time in Spain. Therefore, it was possible to use it and compare the results obtained following the traditional methodology or introducing a new calculation of Income per Unit of Equivalent Consumption in Spanish households taking into account IMRENT. We present a descriptive analysis and a probit estimation to calculate the probability of leaving poverty when the variable is considered. The results show the relevance of this proxy to households' wealth since its incorporation change the profile of Spanish poor: if we do not consider it most people older than 65 years are under poverty line, especially women. But if we include it a big share of widows and retired people cross the border and leave poverty. There is a clear economic policy implication: in the actual situation, with problems to finance Public Pensions' System, it should be necessary to take into account not only current income but wealth to calculate Spanish widow's and retirement pensions. We also obtain a positive effect of been the house owners or if the family is paying a mortgage.

Suggested Citation

  • Jose Calvo & Cristina Sánchez, 2011. "Changes in the characteristics of Spanish poor households: the case of Imputed Rent," ERSA conference papers ersa10p130, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa10p130
    as

    Download full text from publisher

    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa10/ERSA2010finalpaper130.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. László Halpern & Balázs Muraközy, 2007. "Does distance matter in spillover?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15, pages 781-805, October.
    2. Gorodnichenko, Yuriy & Svejnar, Jan & Terrell, Katherine, 2007. "When Does FDI Have Positive Spillovers? Evidence from 17 Emerging Market Economies," IZA Discussion Papers 3079, Institute for the Study of Labor (IZA).
    3. Damijan, Jože P. & Rojec, Matija & Majcen, Boris & Knell, Mark, 2013. "Impact of firm heterogeneity on direct and spillover effects of FDI: Micro-evidence from ten transition countries," Journal of Comparative Economics, Elsevier, pages 895-922.
    4. Nuno Crespo & Maria Paula Fontoura & Isabel Proença, 2009. "FDI spillovers at regional level: Evidence from Portugal," Papers in Regional Science, Wiley Blackwell, pages 591-607.
    5. Damijan, Jože P. & Rojec, Matija & Majcen, Boris & Knell, Mark, 2013. "Impact of firm heterogeneity on direct and spillover effects of FDI: Micro-evidence from ten transition countries," Journal of Comparative Economics, Elsevier, pages 895-922.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa10p130. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier). General contact details of provider: http://www.ersa.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.