A European equivalence scale for public in-kind transfers

Rolf Aaberge, Audun Langørgen and Petter Y. Lindgren ()
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Petter Y. Lindgren: Statistics Norway

The Journal of Economic Inequality, 2024, vol. 22, issue 1, No 1, 32 pages

Abstract: Abstract This paper introduces a theory-based equivalence scale for public in-kind transfers, which justifies comparison of distributions of extended income (cash income plus the value of public services) between European countries. We demonstrate the usefulness of the proposed equivalence scale in an empirical analysis of the effects of public health care, long-term care, education and childcare expenditure on estimates of income inequality and poverty for 24 European countries. The empirical results show significant effects of public in-kind transfers on the level of income inequality and poverty for all countries. Over the period 2006–2018, inequality and poverty estimates display rather different trends across European countries.

Keywords: Income distribution; Poverty; Equivalence scales; Relative needs; Public services; Public in-kind transfers (search for similar items in EconPapers)
JEL-codes: D30 H40 I30 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10888-023-09586-6

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