Why are Households that Report the Lowest Incomes So Well‐off?

We document that households in the UK with extremely low measured income tend to spend much more than those with merely moderately low income. This phenomenon is evident throughout three decades worth of microdata and across different employment states, levels of education and marital statuses. Of t...

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Volume: 127
Main Author: Brewer, Mike
Etheridge, Ben
O’Dea, Cormac
Format: Journal Article
Language: English
Zielgruppe: Trade
Place of publication: HOBOKEN WILEY 01.10.2017
Wiley Subscription Services, Inc
published in: The Economic journal (London) Vol. 127; no. 605; pp. F24 - F49
Data of publication: October 2017
ISSN: 0013-0133
EISSN: 1468-0297
Discipline: Economics
Bibliography: http://www.esds.ac.uk
We are very grateful to Thomas Crossley for advice and encouragement and to Robert Joyce, Laura Keyse, Barra Roantree, Richard Tonkin and Karen Watkins for a number of useful conversations and to seminar participants at the Institute for Fiscal Studies, the Institute for Social and Economic Research at the University of Essex, and the Department for Economics at the University of Sheffield for useful comments. The authors gratefully acknowledge funding from the ESRC Centre for the Microeconomic Analysis of Public Policy at the Institute for Fiscal Studies (Reference RES‐544‐28‐5001) (Brewer, Etheridge and O’Dea) and from the ESRC Research Centre on Micro‐Social Change at the University of Essex (ES/L009153/1) (Brewer). The Living Cost and Food Survey and its predecessors, and the Family Resources Survey, are Crown copyright and are reproduced with the permission of the Controller of HMSO and the Queen's Printer for Scotland, and are available from the Economic and Social Data Service
The ESDS, the original owners of the data (the Office for National Statistics and the Department for Work and Pensions respectively) and the copyright holders bear no responsibility for their further analysis or interpretation. Any errors remain the responsibility of the authors.
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