The costs of disability in Australia: a hybrid panel-data examination

Vu, Xuan-Binh (Benjamin) and Khanam, Rasheda and Rahman, Maisha and Nghiem, Son (2019) The costs of disability in Australia: a hybrid panel-data examination. Discussion Paper. University of Southern Queensland . [Report]

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Background: This paper estimates the costs of disability in Australia using recent longitudinal data (2001-2016) from the Household, Income and Labour Dynamics in Australia Survey.

Objective: To estimate the costs of disability in Australia

Methods: The standard-of-living approach with a hybrid panel data model.

Results: The average cost of having any disability in the short-run in Australia was 50% of disposable adult-equivalent annual income. This figure varied considerably with the severity of disability, ranging from 19% for people without work-related limitations to 102% for people with severe limitations. The average cost of disability in the long-run was higher at 63% of adult-equivalent disposable income. This was distributed more evenly across severity levels, ranging from 37% for people with no work-related limitations to 94% for people with severe limitations.

Conclusions: First, the living standard is lower in households with people with a disability compared to households without members with a disability. Current poverty measures fail to consider substantial differences in poverty rates between people with and without a disability. Second, the estimated costs reflected in this study do consider forgone income due to disability. Third, increasing the income or providing subsidised services for people with a disability may increase the financial satisfaction of these people, leading to an improved living standard.

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Item Type: Report (Discussion Paper)
Item Status: Live Archive
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 08 Apr 2019 04:52
Last Modified: 11 Apr 2019 04:48
Uncontrolled Keywords: cost of disability; standard of living; panel data; hybrid estimator; Australia
Fields of Research : 14 Economics > 1402 Applied Economics > 140208 Health Economics

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