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Equivalisation for the extra costs of disability
 — comparing incomes when needs differ
Author(s)Asghar Zaidi, Tania Burchardt
Corporate AuthorESRC Centre for Analysis of Social Exclusion - CASE, London School of Economics; ESRC Research Group Simulating Social Policy in an Ageing Society - SAGE, London School of Economics
PublisherESRC SAGE Research Group, London School of Economics, London, 2002
Pages41 pp (CASEpaper) (SAGE discussion paper, no 10)
SourceAvailable free of charge at: www.lse.ac.uk/depts/sage Anne Scott, ESRC SAGE Research Group, London School of Economics, Houghton Street, London WC2A 2AE. e-mail: a.scott@lse.ac.uk
KeywordsPhysical disabilities ; Costs [care] ; Needs [elderly] ; Income [older people] ; Cost of living ; Poverty ; Comparison.
AnnotationEquivalisation of incomes for household size and composition is now accepted practice in the measurement of poverty and inequality. Adjustments to take account of variations in need - other than household size - are rarely made. Data from two UK household surveys - the Family Resources Survey (FRS), and the British Household Panel Survey (BHPS) - are used to explore one possible source of additional needs, namely disability. The authors seek to establish whether there are extra costs of living associated with disability, and to quantify any such costs identified. The intuition underlying the approach is that the standard of living achieved by a household is a function of income and needs. The extra costs of disability are derived by comparing the standard of living of households with and without disabled members at a given income, and controlling for other sources of variation. Extra costs of disability are substantial, especially for disabled people living alone, and that these rise with severity of disability. Comparisons of different income distributions demonstrate that the problem of low income for disabled people is significantly understated. (RH).
Accession NumberCPA-030210002 P
ClassmarkBN: QDC: IK: JF: J3C: W6: 48 *

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