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Research Paper project deliverable 1.1f

The distributional impact of imputed rents in the United Kingdom


Publication date

01 Feb 2007


In this report we analyse the distributional impact after accounting for imputed rents in the household disposable income measure, using the Family Expenditure Survey 2000/01 and the Family Resources Survey 2003/4 data.
Rent imputation has been performed following an “opportunity cost approach” implemented with two alternative methodologies, based on regression and stratification.
We find a broad inequality and poverty reduction effect when imputed rents are accounted for in the household disposable income definition. Nevertheless, patterns of inequality and poverty change might significantly differ across different types of beneficiaries


Referred to in: Balcazar, C.F.; Ceriani, L.; Olivieri, S. and Ranzani, M. (2014) Rent imputation for welfare measurement : a review of methodologies and empirical findings. [Washington, D.C.]: World Bank, Poverty Global Practice Group.


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