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A Non-Parametric Microsimulation Approach to Assess Changes in Inequality and Poverty

Robert Vos and Marco Sánchez Cantillo

Working Papers from United Nations, Department of Economics and Social Affairs

Abstract: This paper presents a non-parametric microsimulation methodology for assessing the determinants of changes in income inequality and poverty. One great advantage of this method over alternatives is that it is not very demanding in terms of modelling labour supply and household behaviour while still providing a plausible link between changes in overall labour market conditions and the full household income distribution. The paper also shows how the method can be adapted to assess the poverty and inequality effects of changes in non-labour incomes (such as through a government transfer programme) and how it can be combined with economy-wide models.

Keywords: Non-parametric simulation methods; Computable General Equilibrium Models; Income Distribution; Employment, Unemployment, and Wages; Measurement and Analysis of Poverty; Effects of Welfare Programs; Supply and Demand for Labour; Segmented Labour Markets (search for similar items in EconPapers)
JEL-codes: C14 C15 C16 C68 D31 E24 I32 I38 J21 J24 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2010-03
New Economics Papers: this item is included in nep-cmp
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