Broadening the income concept : how and why to construct non-cash resource needs adjusted equivalence scales?
Faculty of Social Sciences. Sociology
S.l. , 2010
FLEMOSI discussion paper ; 2
University of Antwerp
In most empirical studies the analysis of income distributions is limited to the concept of current cash disposable income. Yet, from a welfare perspective, all economic resources that a household commands determine its welfare levels. Furthermore, non-cash resources just as cash resources are comparably significant economic support measures to households. Thereby, broadening the definition of economic resources from the narrow concept of current disposable income (the sum of market income and cash transfers minus direct taxes and social insurance contributions) towards the inclusion of non-cash income components is an important step forward in a more accurate accounting of household economic welfare. In this paper we focus on the inclusion of the value of public services in the income concept.