A Monetary Approach to Capability Measurement of the Disabled - Evidence from the UK

Wiebke Kuklys ()

Papers on Strategic Interaction from Max Planck Institute of Economics, Strategic Interaction Group

Abstract: In this paper we attempt to assess empirically the capability set of the disabled. We formulate the assumptions under which capability can be interpreted as needs-adjusted disposable household income, and use equivalence scales methodology to estimate it for households in the UK. We identify a positive cost of disability to the households and state, to what extent a disability can reduce an individual's capability set. The use of the derived capability measure instead of traditional income in poverty measures leads to a dramatic increase of poverty among the families with disabled members.

Keywords: capability; disability; equivalence scale; psychometric; poverty (search for similar items in EconPapers)
JEL-codes: D1 I12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu and nep-hea
Date: 2004-02
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Persistent link: http://EconPapers.repec.org/RePEc:esi:discus:2004-08

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