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How to Compare the Incomparable: An International Comparison of the Impact of Housing Costs on Levels of Social Assistance

This article analyses the importance of housing costs in cross-national comparisons of social assistance. The article explores the model family technique, the most commonly used method of comparing levels of support, and analyses the impact of housing costs on outcomes. The importance of housing costs is assessed by using different definitions of disposable income, by comparing the level of social assistance without, before and after housing costs. Three different rent levels are specified in order to evaluate the impact of housing costs and seven different family types are considered in the analysis. The countries used for comparison are Denmark, Finland, the Netherlands, Sweden, and the United Kingdom, during the late 1990s. The findings show that housing costs have an impact on outcomes in social assistance: when housing costs are disregarded, the differences between countries are greater. The outcomes vary with different calculations of disposable income: the relative value of assistance between countries and families varies, and the ranking of countries is also altered. Different levels of housing costs have a similar impact, showing changes in the relative position of countries. Overall the findings show that taking housing costs into account makes a difference.