L'Effet Des Taxes Et Des Transferts Sur La Pauvrete Au Quebec Et Au Canada (The Effect of Taxes and Transfers on Poverty in Quebec and in Canada) (French)

CIRPEE Working Paper 09-24

31 Pages Posted: 20 Aug 2009 Last revised: 16 Jul 2018

See all articles by Sami Bibi

Sami Bibi

Université Laval - Département d'Économique

Jean-Yves Duclos

Laval University; IZA Institute of Labor Economics

Date Written: August 18, 2009

Abstract

This paper estimates the contribution of the main sources of income as well as that of taxes and transfers on the level of poverty in Quebec and in Canada. This contribution is decomposed into a product of the effects of total size and performance per dollar of each of the income source. An important problem in this type of exercise is that the order along which the components of income are ranked can influence considerably the share of total poverty alleviation allocated to each component. A sharing rule is thus used to allocate to each income component a part of total poverty alleviation that is independent of the ordering that is chosen. Sensitivity tests are also applied to assess the role of the choice of poverty lines and indices. The results indicate that the more generous social programs do not always exhibit the greatest relative poverty reduction performance, and that other aspects of the tax/benefit system that are less prominent are more effective in that regard. Relatively to the rest of Canada, Quebec’s social programs are both more generous and more poverty-performant, this, however, being associated with taxes in Quebec that are also heavier and more costly in terms of poverty impact.

Keywords: Poverty, transfers, taxes, robustness analysis, Shapley value, Quebec, Canada

JEL Classification: D31, I32, I38

Suggested Citation

Bibi, Sami and Duclos, Jean-Yves, L'Effet Des Taxes Et Des Transferts Sur La Pauvrete Au Quebec Et Au Canada (The Effect of Taxes and Transfers on Poverty in Quebec and in Canada) (French) (August 18, 2009). CIRPEE Working Paper 09-24. Available at SSRN: https://ssrn.com/abstract=1457292 or http://dx.doi.org/10.2139/ssrn.1457292

Sami Bibi (Contact Author)

Université Laval - Département d'Économique ( email )

2325 Rue de l'Université
DeSeve
Quebec Canada, QC G1K 7P4
Canada

Jean-Yves Duclos

Laval University ( email )

Quebec G1K 7P4
Canada
418-656-7096 (Phone)
418-656-9727 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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