A Comparison of the Poverty Impact of Transfers, Taxes and Market Income Across Five OECD Countries

20 Pages Posted: 7 Sep 2010

See all articles by Sami Bibi

Sami Bibi

Université Laval - Département d'Économique

Jean-Yves Duclos

Laval University; IZA Institute of Labor Economics

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Abstract

This paper compares the poverty reduction impact of income sources, taxes and transfers across five OECD countries. Since the estimation of that impact can depend on the order in which the various income sources are introduced into the analysis, it is done by using the Shapley value. Estimates of the poverty reduction impact are presented in a normalized and unnormalized fashion, in order to take into account the total as well as the per dollar impacts. The methodology is applied to data from the Luxembourg Income Study database.

Suggested Citation

Bibi, Sami and Duclos, Jean-Yves, A Comparison of the Poverty Impact of Transfers, Taxes and Market Income Across Five OECD Countries. Bulletin of Economic Research, Vol. 62, No. 4, pp. 387-406, October 2010. Available at SSRN: https://ssrn.com/abstract=1672903 or http://dx.doi.org/10.1111/j.1467-8586.2009.00339.x

Sami Bibi

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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