Robin Hood versus Piggy Bank: Income redistribution in Portugal 2006-10

Carlos Rodrigues and Isabel Andrade

No 2013/28, Working Papers Department of Economics from ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa

Abstract: The redistributive effect of the Portuguese welfare state through pensions, benefits and taxes is investigated in detail over the 2006-10 period using disposable income as benchmark. All social and fiscal policy instruments analysed contribute significantly to the reduction in inequality and poverty, with benefits other than pensions being the most cost-efficient. However, the impact of the economic crisis and austerity policies implemented from 2010 has reversed the previous trends and affected negatively the efficacy and efficiency of all instruments.

Keywords: income inequality; redistribution; tax and expenditure policy; Portugal. (search for similar items in EconPapers)
JEL-codes: C81 D31 H22 H55 (search for similar items in EconPapers)
Date: 2013-12
New Economics Papers: this item is included in nep-age and nep-pbe
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