The Sensitivity of Poverty Rates to Macro-Level Changes in the European Union

Posted: 29 Feb 2008

See all articles by Herwig Immervoll

Herwig Immervoll

Organization for Economic Co-Operation and Development (OECD) - Social Policy Division; World Bank, Europe and Central Asia; IZA Institute of Labor Economics; ISER Institute for Social and Economic Research; University of Canberra - National Centre for Social and Economic Modelling (NATSEM); United Nations - European Centre for Social Welfare Policy and Research

Horacio Levy

University of Essex - Institute for Social and Economic Research (ISER)

Christine Lietz

University of Cambridge

Daniela Mantovani

University of Cambridge - Department of Applied Economics; Prometeia Calcolo

Holly Sutherland

University of Essex - Institute for Social and Economic Research (ISER)

Abstract

The authors use the European Union-wide tax-benefit model, EUROMOD, to establish baseline rates of relative poverty in 1998 for each of the Member States and then explore their sensitivity to (a) an increase in unemployment, (b) real income growth and (c) an increase in earnings inequality. They find that poverty rates are sensitive to such 'macro-level' changes but that the size - and in some cases the direction - of the effect varies across countries. If such indicators are to be used in judging the effectiveness of social policies, it is important that differences in responsiveness are fully understood.

Keywords: European Union, Microsimulation, Social indicators

Suggested Citation

Immervoll, Herwig and Immervoll, Herwig and Levy, Horacio and Lietz, Christine and Mantovani, Daniela and Sutherland, Holly, The Sensitivity of Poverty Rates to Macro-Level Changes in the European Union. Cambridge Journal of Economics, Vol. 30, No. 2, pp. 181-199, 2006, Available at SSRN: https://ssrn.com/abstract=904495

Herwig Immervoll (Contact Author)

Organization for Economic Co-Operation and Development (OECD) - Social Policy Division ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France
(33 1) 45 24 92 14 (Phone)
(33 1) 44 30 61 78 (Fax)

HOME PAGE: http://www.oecd.org/els/social

World Bank, Europe and Central Asia ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

IZA Institute of Labor Economics ( email )

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

HOME PAGE: http://www.iza.org/profile?key=1935

ISER Institute for Social and Economic Research ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

HOME PAGE: http://www.iser.essex.ac.uk/people/research-associates

University of Canberra - National Centre for Social and Economic Modelling (NATSEM) ( email )

Canberra, ACT 2601
AUSTRALIA

HOME PAGE: http://www.canberra.edu.au/centres/natsem/people/associates/herwig-immervoll

United Nations - European Centre for Social Welfare Policy and Research ( email )

Berggasse 17
Vienna, A1010
Austria

HOME PAGE: http://www.euro.centre.org

Horacio Levy

University of Essex - Institute for Social and Economic Research (ISER) ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

HOME PAGE: http://www.iser.essex.ac.uk/staff/staff-details.php?personID=640

Christine Lietz

University of Cambridge ( email )

Trinity Ln
Cambridge, CB2 1TN
United Kingdom

Daniela Mantovani

University of Cambridge - Department of Applied Economics ( email )

Sidgwick Avenue
Cambridge, CB3 9DE
United Kingdom

Prometeia Calcolo

Via G. Marconi, 43
I-40122 Bologna
Italy

Holly Sutherland

University of Essex - Institute for Social and Economic Research (ISER) ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
829
PlumX Metrics