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A Comparison Of The Poverty Impact Of Transfers, Taxes And Market Income Across Five Oecd Countries

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  • Sami Bibi
  • Jean-Yves Duclos

Abstract

This paper compares the poverty reduction impact of income sources, taxes and transfers across five OECD countries. Since the estimation of that impact can depend on the order in which the various income sources are introduced into the analysis, it is done by using the Shapley value. Estimates of the poverty reduction impact are presented in a normalized and un-normalized fashion, in order to take into into account the total as well as the per dollar impacts. The methodology is applied to data from the Luxembourg Income Study (LIS) database.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Bulletin of Economic Research.

Volume (Year): 62 (2010)
Issue (Month): 4 (October)
Pages: 387-406

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Handle: RePEc:bla:buecrs:v:62:y:2010:i:4:p:387-406

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References

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  1. Lipton, Michael & Ravallion, Martin, 1993. "Poverty and policy," Policy Research Working Paper Series 1130, The World Bank.
  2. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  3. Timothy Smeeding, 2006. "Poor People in Rich Nations: The United States in Comparative Perspective," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 69-90, Winter.
  4. Makdissi, Paul & Therrien, Yannick & Wodon, Quentin, 2006. "L’impact des transferts publics et des taxes sur la pauvreté au Canada et aux États-Unis," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(3), pages 377-394, septembre.
  5. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
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Cited by:
  1. Michał Brzeziński, 2011. "Accounting for recent trends in absolute poverty in Poland: A decomposition analysis," Working Papers 2011-19, Faculty of Economic Sciences, University of Warsaw.
  2. Guillaume Allègre, 2012. "Work, family or state ? from wage inequalitie ans in-work poverty in a european cross-country perspective," Documents de Travail de l'OFCE 2012-12, Observatoire Francais des Conjonctures Economiques (OFCE).
  3. Guillaume Allegre, 2012. "Work, Family or State? From wage inequalities to standard of living inequalities and inwork poverty in a European cross-country perspective," Sciences Po publications 2012-12, Sciences Po.

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