On the road to equity: examining income related inequalities in ownership of safer cars

Summary

Using administrative Driver and Vehicle Licensing Agency (DVLA) data, matched with the UK Household Longitudinal Study (covering the period between 2013 and 2015), we estimate income-related inequalities in ownership of safer cars. We also apply regression-based decompositions to explore the source of inequalities. We find systematic pro-rich inequalities in ownership of safer cars that are almost entirely explained by the car’s price and year of manufacture. A range of household-level variables, including demographics, risk aversion, time preference, personality traits, cognitive ability, and education, play a much less pronounced contribution to overall inequality. The observed inequity in safer car ownership with potential effects on the socio-economic gap in road-traffic injuries may require regulatory interventions.