The Effect of Housing Expenses and Subsidies on the Income Distribution in Flanders and the Netherlands |
| |
Authors: | Kristof Heylen Marietta Haffner |
| |
Affiliation: | 1. Higher Institute for Labour (Hiva), Catholic University of Leuven , Leuven , Belgium;2. Steunpunt Ruimte en Wonen , Leuven/Heverlee , Belgium;3. Steunpunt Ruimte en Wonen , Leuven/Heverlee , Belgium;4. OTB Research Institute for the Built Environment, Delft University of Technology , Delft , The Netherlands;5. School of Global Studies, Social Science and Planning, College of Design and Social Context, Ahuri Research Centre, RMIT University , Melbourne , Australia |
| |
Abstract: | This study explores the role of housing expenses and subsidies with respect to income distribution in Flanders (the northern part of Belgium) and the Netherlands in 2005–2006. It analyses income poverty and inequality by comparing equivalent disposable income before and after housing expenses with a relative poverty threshold and the Gini coefficient. Poverty and income inequality increase in both ‘countries’ when equivalent disposable income is corrected for housing expenses. Furthermore, the relative position of outright owners and social tenants regarding poverty improves. Housing subsidies play a (partly) different role in Flanders and the Netherlands. The implicit social rent subsidy in Flanders and the explicit housing allowance in the Netherlands serve the same goal; however, they both redistribute income relatively strongly in favour of low-income tenants. The tax relief system on the other hand increases income inequality in society, in both Flanders and the Netherlands, whereas our comparative analysis suggests that tax relief does not have a moderating effect on net housing expenses. |
| |
Keywords: | After housing income Flanders housing income inequality income poverty the Netherlands |
|
|