The Distributional Effects of Tax‐Benefit Policies Under New Labour: A Decomposition Approach

19 Pages Posted: 27 Oct 2012

See all articles by Olivier Bargain

Olivier Bargain

IZA Institute of Labor Economics; University College Dublin (UCD)

Date Written: December 2012

Abstract

I revisit the distributional effects of tax‐benefit policy reforms under New Labour using counterfactual microsimulations embedded in a Shapley decomposition of time change in inequality and poverty indices. This makes it possible to quantify the relative effect of policy changes compared to all other changes, and to check the sensitivity of this policy effect to the use of (i) income vs. price indexation, and (ii) base vs. end period data. Inequality and poverty depth would have increased, and the sharp fall in child poverty would not have occurred, had the reforms of income support and tax credits not been implemented.

JEL Classification: H23, H53, I32

Suggested Citation

Bargain, Olivier, The Distributional Effects of Tax‐Benefit Policies Under New Labour: A Decomposition Approach (December 2012). Oxford Bulletin of Economics and Statistics, Vol. 74, Issue 6, pp. 856-874, 2012, Available at SSRN: https://ssrn.com/abstract=2167582 or http://dx.doi.org/10.1111/j.1468-0084.2011.00684.x

Olivier Bargain (Contact Author)

IZA Institute of Labor Economics ( email )

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

University College Dublin (UCD) ( email )

Belfield, Dublin 4 4
Ireland
+353 1 716 8357 (Phone)
+353 1 283 0068 (Fax)

HOME PAGE: http://www.ucd.ie/economics/staff/obargain/obargain.htm

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
1
Abstract Views
238
PlumX Metrics