ABSTRACT
In general, the distribution of bonus is progressive in the sense that those households with smaller income are allotted a larger share of bonus. We assume that within a given income class the average propensity to spend on housing is essentially the same for home-owners as for non-owners. The imputed rent for various income classes can then be derived from the corresponding propensities. Contrary to the case of bonus, the distribution of imputed rent is regressive in that households of higher income are greatly favoured. The inclusion of imputed rent, therefore, aggravates income inequality. In view of the mild regressiveness and with due allowance for the omissions and imprecise calculation, we can conclude that the overall distribution of income among land households does not appear to be materially affected by the inclusion of bonus, imputed rent of owner-occupied housing, and non-cash income of farm households.
