The Redistributive Impact Of Alternative Income Maintenance Schemes: A Microsimulation Study Using Swiss Data
AbstractTaking a benchmark scenario, the current situation in Switzerland, and using a microsimulation technique, we compare the effectiveness of various income maintenance schemes for reducing inequality and poverty. A full negative income tax allowance designed to eliminate poverty is shown to reduce income inequality most drastically. An integrated federal linear tax rate of 62 percent is required to make it viable. Aggregate work hours are reduced by approximately 10 percent and average disposable income falls by 9.3 percent under such circumstances. A participation income restricted to adults in employment and covering 50 percent of subsistence costs is however shown to result in an unambiguous social welfare improvement over the current situation in Switzerland. Copyright 2008 The Authors. Journal compilation International Association for Research in Income and Wealth 2008.
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Bibliographic InfoArticle provided by International Association for Research in Income and Wealth in its journal Review of Income and Wealth.
Volume (Year): 54 (2008)
Issue (Month): 2 (06)
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- Abul Naga Ramses & Kolodziejczyk Christophe & Muller Tobias, 2004. "The Redistributive Impact of Alternative Income Maintenance Schemes: A Microsimulation Study using Swiss Data," Research Papers by the Department of Economics, University of Geneva 2004.11, Département des Sciences Économiques, Université de Genève.
- Abul Naga Ramses & Kolodziejczyk Christophe & Muller Tobias, 2007. "The Redistributive Impact of Alternative Income Maintenance Schemes: A Microsimulation Study using Swiss Data," Research Papers by the Department of Economics, University of Geneva 2007.03, Département des Sciences Économiques, Université de Genève.
- I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
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