Skip to content

Journal Article

Disability costs and equivalence scales in the older population in Great Britain

Authors

Publication date

20 Jan 2014

Abstract

We use a standard of living (SoL) approach to estimate older people's disability costs, using data on 8000 individuals from the U.K. Family Resources Survey. We extend previous research in two ways. First, by allowing for a more flexible relationship between SoL and income, the structure of the estimated disability cost and equivalence scale is not dictated by a restrictive functional form assumption. Second, we allow for the latent nature of disability and SoL, addressing measurement error in the disability and SoL indicators in surveys. We find that disability costs are strongly related to severity of disability, and vary with income in absolute and proportionate terms. Older people above the median disability level require an extra £99 per week (2007 prices) on average to reach the SoL of an otherwise similar person at the median. Costs faced by older people in the highest decile of disability average £180.

Published in

Review of Income and Wealth

DOI

http://dx.doi.org/10.1111/roiw.12108

ISSN

16

Subjects

Disability, Welfare Benefits, and Income Dynamics

Links

http://serlib0.essex.ac.uk/record=b1588073~S5

Notes

Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*; Online Early


Related publications

  1. Disability costs and equivalence scales in the older population

    Marcello Morciano, Ruth Hancock, and Stephen Pudney

    1. Disability
    2. Welfare Benefits
    3. Income Dynamics

#522214


Research home

Research home

News

Latest findings, new research

Publications search

Search all research by subject and author

Podcasts

Researchers discuss their findings and what they mean for society

Projects

Background and context, methods and data, aims and outputs

Events

Conferences, seminars and workshops

Survey methodology

Specialist research, practice and study

Taking the long view

ISER's annual report

Themes

Key research themes and areas of interest