Inequality Measurement and Tax/Transfer Policy

Patricia Apps and Ray Rees

No 8378, CESifo Working Paper Series from CESifo

Abstract: We provide a critique of the standard methodology which bases welfare comparisons between households on deflating household income and consumption by an equivalence scale. We argue that this leads to support for tax/transfer policies that significantly disadvantage low to middle in-come households and women as second earners. We base the critique both on a theoretical model of the family household and a detailed analysis of Australian income and employment data.

Keywords: inequality; equivalence scales; tax/transfer policy; families (search for similar items in EconPapers)
JEL-codes: D13 D31 H21 H24 H31 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Inequality measurement and tax/transfer policy (2022)
Working Paper: Inequality Measurement and Tax/Transfer Policy (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_8378

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