Apology in advance if this question seems too elementary. I am intrigued by this article I came across,Do We Care About Income Inequality, or Absolute Well-Being?
And in the article the author was trying to make a percentile by percentile comparison, which is very interesting, but I am slightly skeptical about the conclusion the author was trying to drive at. The concept of PPP is conceptually pretty straight forward, but unfotrunately I can't find the detailed construction methodology on World Bank. What I am trying to figure out is this: in the price level calculation, how did the economists taken into account the almost zero education and healthcare cost of some wellfare states. The charts cited states that tax and transfer was taken into account, but I am not sure if it means only direct transfer or if it includes service provided like education and healthcare. I think to most people, a tin of coke cost twice as much in Europe for example, probably won't affect their living standard significantly; But say the off-the-chart private school tuition fees would significantly influence one's living standard, assuming one has children. I wonder if the PPP income level taken that into account? Please note I just want to know the facts, not political ramble. I also would appreciate if someone could provide some additional resources on this topic.