The distributional effects of tax-benefit policies under New Labour: a Shapley decomposition

Olivier Bargain

No EM2/09, EUROMOD Working Papers from EUROMOD at the Institute for Social and Economic Research

Abstract: Using counterfactual microsimulations, Shapley decompositions of time change in inequality and poverty indices make it possible to disentangle and quantify the relative effect of tax-benefit policy changes, compared to all other effects including shifts in the distribution of market income. Using this approach also helps to clarify the different issues underlying the distributional evaluation of policy reforms. An application to the UK (1998-2001) confirms previous findings that inequality and depth of poverty would have increased under the first New Labour government, had important reforms like the extensions of income support and tax credits not been implemented. These reforms have also contributed to substantially reduce poverty among families with children and pensioners.

Date: 2009-03-23
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published

Downloads: (external link)
https://www.iser.essex.ac.uk/wp-content/uploads/fi ... s/euromod/em2-09.pdf (application/pdf)

Related works:
Working Paper: The Distributional Effects of Tax-Benefit Policies under New Labour: A Shapley Decomposition (2009)
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:ese:emodwp:em2-09

Access Statistics for this paper

More papers in EUROMOD Working Papers from EUROMOD at the Institute for Social and Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Jonathan Nears ().