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Redistribution over the Lifetime in the Irish Tax-Benefit System - An Application of a Prototype Dynamic Microsimulation Model for Ireland

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  • Cathal O’Donoghue

    (National University of Ireland, Galway and London School of Economics)

Abstract

This paper examines the distribution of lifetime income in Ireland. To do this a new prototype dynamic microsimulation model for Ireland is used to generate lifetime income streams. Aggregating over the lifetime we can assess the distribution of lifetime income and the degree of redistribution in the tax-benefit system. In addition to the effect of taxes and benefits, we decompose lifetime income into its components and examine the impact of different life-cycle patterns.

Suggested Citation

  • Cathal O’Donoghue, 2001. "Redistribution over the Lifetime in the Irish Tax-Benefit System - An Application of a Prototype Dynamic Microsimulation Model for Ireland," The Economic and Social Review, Economic and Social Studies, vol. 32(3), pages 191-216.
    • Handle: RePEc:eso:journl:v:32:y:2001:i:3:p:191-216
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    References listed on IDEAS

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    1. Tim Callan & Brian Nolan, 1999. "Income Inequality in Ireland in the 1980s and 1990s," Palgrave Macmillan Books, in: Frank Barry (ed.), Understanding Ireland’s Economic Growth, chapter 8, pages 167-192, Palgrave Macmillan.
    2. Jonathan Morduch & Terry Sicular, 2002. "Rethinking Inequality Decomposition, With Evidence from Rural China," Economic Journal, Royal Economic Society, vol. 112(476), pages 93-106, January.
    3. Anders Björklund, 1993. "A Comparison Between Actual Distributions Of Annual And Lifetime Income: Sweden 1951–89," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(4), pages 377-386, December.
    4. N. S. Blomquist, 1981. "A Comparison Of Distributions Of Annual And Lifetime Income: Sweden Around 1970," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 27(3), pages 243-264, September.
    5. Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December.
    6. Richard Layard, 1977. "On Measuring the Redistribution of Lifetime Income," International Economic Association Series, in: Martin S. Feldstein & Robert P. Inman (ed.), The Economics of Public Services, chapter 4, pages 45-72, Palgrave Macmillan.
    7. Hughes, Gerard, 1985. "Payroll Tax Incidence, The Direct Tax Burden and The Rate of Return on State Pension Contributions in Ireland," Research Series, Economic and Social Research Institute (ESRI), number GRS120, June.
    8. Tim Callan & Brian Nolan, 1990. "Income Distribution and Redistribution: Ireland in Comparative Perspective," Papers WP017, Economic and Social Research Institute (ESRI).
    9. Bjorklund, Anders, 1993. "A Comparison between Actual Distributions of Annual and Lifetime Income: Sweden 1951-89," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(4), pages 377-386, December.
    10. Björklund, Anders & Palme, Mårten, 1997. "Income Redistribution within the Life Cycle versus between Individuals: Empirical Evidence Using Swedish Panel Data," SSE/EFI Working Paper Series in Economics and Finance 197, Stockholm School of Economics.
    11. Blomquist, N S, 1981. "A Comparison of Distributions of Annual and Lifetime Income: Sweden around 1970," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 27(3), pages 243-264, September.
    12. Jarvis, Sarah & Jenkins, Stephen P, 1998. "How Much Income Mobility Is There in Britain?," Economic Journal, Royal Economic Society, vol. 108(447), pages 428-443, March.
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    Cited by:

    1. Li, Jinjing & O'Donoghue, Cathal, 2011. "Incentives of Retirement Transition for Elderly Workers: An Analysis of Actual and Simulated Replacement Rates in Ireland," IZA Discussion Papers 5865, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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