Does going beyond income make a difference? Income vs. equivalent income in the EU over 2007-2011
https://doi.org/10.3326/pse.44.4.1 | Published online: December 1, 2020 Table 1
Ordered logit estimation of life satisfaction model
Note: Ordered logit estimates. Dependent variable: life satisfaction, with integer values from 1 (very dissatisfied) to 10 (very satisfied). All models include a constant (α) (coefficient not reported) and country dummies (δ2, δ3,…, δ27) (coefficients not reported). In column “Difference”, the differences are obtained by subtracting the coefficients for 2007 from those for 2011. For definitions of variables, see section 3 and Appendix. Robust standard errors are in brackets. +, *, ** and *** indicate statistical significance at the 10, 5, 1 and 0.1 percent level, respectively. The reference individual: woman, secondary education, single, from rural settlement, childless, surveyed in 2011, from Austria, non-unemployed, with all non-income dimensions at the best levels. Weights are used in all estimations.Figure 1
Individual counterfactual equivalent income Note: Example of interpretation: 0.1 above the bar labelled HEAvbad, means that is a person is in very bad, rather than very good, health (i.e., if HEAvbad = 1) and has all the other nonincome dimensions at their reference (best) levels, her equivalent income is 0.1 percent of her income. The figure is calculated as: 100exp(φ2). Other figures can be calculated and interpreted in the same way.Figure 2
Average incomes and equivalent incomes Figure 3
Income and equivalent income inequality Figure 4
Decomposition of variance of logarithms of individual equivalent incomes Note: Decomposition is based on equation (9). Y, UNE, HEA, HOU, CRI and ENV refer to the contributions of income, unemployment, health, housing, crime and environment, respectively. Table 2
Decomposition of cross-country variance of levels and changes in social welfare
Note: Decompositions are based on equations (10) and (11), multiplied by 100. Table 3
Variance decomposition of equivalent income-based social welfare
Note: Cross-country variance decomposition based on equation (12) and its version representing changes over 2007-2011. Figure 5
Decomposition of growth in equivalent income-based social welfare Note: Decomposition based on the version of equation (12) representing changes over 2007-2011 (see text). Table A1
Number of observations per country and year
Table A2
Variable definitions and summary statistics
Note: The means and standard deviations are for all countries and only for the observations in the sample used for the estimation of the life satisfaction model. Figure A1
Gini coefficients for original and rescaled incomes Figure A2
Decomposition of the difference between the Gini coefficient for original and rescaled incomes
Note: The means and standard deviations are for all countries and only for the observations in the sample used for the estimation of the life satisfaction model. Table 1 Ordered logit estimation of life satisfaction model DISPLAY Table Figure 1 Individual counterfactual equivalent income DISPLAY Figure Figure 2 Average incomes and equivalent incomes DISPLAY Figure Figure 3 Income and equivalent income inequality DISPLAY Figure Figure 4 Decomposition of variance of logarithms of individual equivalent incomes DISPLAY Figure Table 2 Decomposition of cross-country variance of levels and changes in social welfare DISPLAY Table Table 3 Variance decomposition of equivalent income-based social welfare DISPLAY Table Figure 5 Decomposition of growth in equivalent income-based social welfare DISPLAY Figure Table A1 Number of observations per country and year DISPLAY Table Table A2 Variable definitions and summary statistics DISPLAY Table Figure A1 Gini coefficients for original and rescaled incomes DISPLAY Figure Figure A2 Decomposition of the difference between the Gini coefficient for original and rescaled incomes DISPLAY Figure |
December, 2020IV/2020 |