EconPapers    
Economics at your fingertips  
 

Income instability and fiscal progression

B. Cecilia Garcia‐Medina and Jean-Francois Wen ()

Canadian Journal of Economics/Revue canadienne d'économique, 2018, vol. 51, issue 2, 419-451

Abstract: Abstract We construct the ratio of the post‐fisc to the pre‐fisc variance of the transitory component of family incomes in Canada from 1993 to 2008. The ratio measures how much the tax and transfer system attenuates market income instability. It is shown that the ratio of variances is equivalent theoretically to the concept of residual income progression (squared). The fiscal system became less stabilizing beginning in the late 1990s, especially for families headed by main earners with less than high school education. The trend is attributable to personal income tax reforms and reductions in transfers for lower income families. Résumé Instabilité des revenus et progressivité fiscale. On construit le ratio de la variance de la composante transitoire des revenus des familles au Canada de1993 à 2008 après fiscalité par rapport à avant fiscalité. Ce ratio mesure comment le système de taxes et de transferts atténue l’instabilité des revenus du marché. On montre que le ratio des variances est théoriquement équivalent au concept de progression (au carré) du revenu résiduel. Le système fiscal est devenu moins stabilisant à partir de la fin des années 1990, en particulier pour les familles dont les chefs de famille et sources des principaux gains ont moins qu’un niveau d’éducation secondaire. La tendance est attribuable aux réformes dans l’impôt sur le revenu personnel et aux réductions des transferts vers les familles aux revenus moins élevés.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/caje.12326

Related works:
Journal Article: Income instability and fiscal progression (2018) Downloads
Working Paper: Income Instability and Fiscal Progression (2016) Downloads
Working Paper: Income Instability and Fiscal Progression (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:canjec:v:51:y:2018:i:2:p:419-451

Access Statistics for this article

More articles in Canadian Journal of Economics/Revue canadienne d'économique from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2021-06-08
Handle: RePEc:wly:canjec:v:51:y:2018:i:2:p:419-451