Estimating the extra cost of living for people with disabilities

Abstract

Addressing the extra economic costs of disability is a logical step towards alleviating elements of social exclusion for people with disabilities. This paper estimates the long run economic cost of disability in Ireland in terms of the additional spending needs that arise due to disability. It defines and estimates models of the private costs borne by families with individuals who have a disability in Ireland when compared to the wider population, both in general and by severity of disability. Our modelling framework is based on the standard of living approach to estimating the cost of disability. We extend on previous research by applying panel ordered probit models to Living in Ireland survey data 1995-2001 in order to control for the effects of previous disability and income and correlated unobserved heterogeneity. The approach allows us to quantify, for the first time, the additional long run economic costs of living associated with disability. Our findings suggest that the extra economic cost of disability in Ireland is large and varies by severity of disability, with important implications for measures of poverty.

Disability and Poverty in Developing Countries: A Snapshot from the World Health Survey

“…As noted in Baldwin and Johnson (1994), a blind person might find it difficult to operate a crane but might 8 and Burchardt 2005;Braithwaite and Mont 2009;Cullinan et al 2010). Because disability can both limit and increase household expenditures, the net effect is not a priori obvious.…”

Estimating the extra cost of living with disability in Vietnam

“…The figure is a bit lower than the estimate of 11.5% of household income by Mont and Cuong (2011), yet consistent with estimates from India (Erb & Harriss-White, 2002) and other developing countries (Braithwaite & Mont, 2009). Estimates are significantly lower than those of high-income country settings including the UK (11-69%), Australia (29-37%), Ireland (30-33%; Cullinan et al, 2011;Saunders, 2006;Zaidi & Burchardt, 2003).…”

“…Saunders (2006) showed that the extra cost of living with disability in Australia correspond to 29% of 'equivalised income' although this measure increases to 37% when an alternative, and probably more realistic, measure of disability is used (Saunders, 2006). A report by Cullinan et al (2011) estimated the long-run economic cost of disability in Ireland of about 30.3-32.7% of average weekly income.…”

“…According to economic theory, the standard of living variable consists of three important characteristics (Cullinan et al, 2011;Zaidi & Burchardt, 2003). Our survey collected information on different items which can be used as proxies of the standard of living including saving ability (has any saving) and 34 household assets (type of house, tap water, flush toilet, cooking energy, television, radio, video, fridge, air conditioner, electric fan, heater, washing machine, electric water boiler, rice cooker, microwave, telephone, mobile phone, computer, Internet, gas cook, stove, sofa, motorbike, bike, electric bike, car, truck, boat, electric generator, agriculture machine, vacuum cleaner, camera, satellite TV and kettle), which may cover the wider range of income.…”

“…washing powder or health care; Tibble, 2005). Some reports from developed countries, such as by Martin and White (1988), Berthoud et al (1993), Zaidi and Burchardt (2003), Saunders (2006), and Cullinan, Gannonb, and Lyons (2011) have demonstrated that the extra cost of disability are substantial.…”