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The distributional impact of social transfers in the European Union: evidence from the ECHP

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Author Info
Christopher Heady
Theodore Mitrakos
Panos Tsakloglou

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Abstract

Social transfers vary enormously across the European Union, as has been demonstrated in earlier research. This paper analyses the comparative effects of these transfers on inequality and poverty, using consistent household data. The analysis shows that the distributional impact of these transfers is greater in countries that spend a higher proportion of their GDP on them, but that there are other important determinants, including the extent of means testing, the distribution of funds between different types of transfer and the degree of targeting for each transfer. It also shows that effective targeting can be achieved without high levels of means testing.

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Article provided by Institute for Fiscal Studies in its journal Fiscal Studies.

Volume (Year): 22 (2001)
Issue (Month): 4 (December)
Pages: 547-565.
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Handle: RePEc:ifs:fistud:v:22:y:2001:i:4:p:547-565.

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Find related papers by JEL classification:
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Cowell, F.A., 2000. "Measurement of inequality," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 2, pages 87-166 Elsevier. [Downloadable!] (restricted)
  2. Pyatt, Graham & Chen, Chau-nan & Fei, John, 1980. "The Distribution of Income by Factor Components," The Quarterly Journal of Economics, MIT Press, vol. 95(3), pages 451-73, November. [Downloadable!] (restricted)
  3. Willem Adema, 1999. "Net Social Expenditure," OECD Labour Market and Social Policy Occasional Papers 39, OECD, Directorate for Employment, Labour and Social Affairs. [Downloadable!]
  4. Shorrocks, Anthony F, 1983. "The Impact of Income Components on the Distribution of Family Incomes," The Quarterly Journal of Economics, MIT Press, vol. 98(2), pages 311-26, May. [Downloadable!] (restricted)
  5. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
  6. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Heshmati, Almas, 2004. "Continental and Sub-Continental Income Inequality," IZA Discussion Papers 1271, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Fofack, Hippolyte & Monga, Celestin, 2004. "Dynamics of income inequality and welfare in Latvia in the late 1990s," Policy Research Working Paper Series 3336, The World Bank. [Downloadable!]
  3. Moutos, Thomas & Scarth, William, 2003. "Some Macroeconomic Consequences of Basic Income and Employment Subsidies," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  4. Sutherland H, 2005. "Micro Level Analysis Of The European Social Agenda: Combating Poverty And Social Exclusion Through Changes In Social And Fiscal Policy Final Report," EUROMOD Working Papers EM8/05, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
  5. Heshmati, Almas, 2004. "The World Distribution of Income and Income Inequality," IZA Discussion Papers 1267, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Immervoll, Herwig & Levy, Horacio & Lietz, Christine & Mantovani, Daniela & O'Donoghue, Cathal & Sutherland, Holly & Verbist, Gerlinde, 2006. "Household Incomes and Redistribution in the European Union: Quantifying the Equalising Properties of Taxes and Benefits," Economics Series 184, Institute for Advanced Studies. [Downloadable!]
    Other versions:
  7. Corak M & Lietz C & Sutherland H, 2005. "The Impact Of Tax And Transfer Systems On Children In The European Union," EUROMOD Working Papers EM4/05, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
    Other versions:
  8. Tim Callan & Tim Smeeding & Panos Tsakloglou, 2007. "Distributional Effects of Public Education Transfers in Seven European Countries," Papers WP207, Economic and Social Research Institute (ESRI). [Downloadable!]
  9. Heshmati, Almas, 2004. "Data Issues and Databases Used in Analysis of Growth, Poverty and Economic Inequality," IZA Discussion Papers 1263, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Milanovic, Branko, 2007. "Ethical case and economic feasibility of global transfers," MPRA Paper 2587, University Library of Munich, Germany. [Downloadable!]
  11. Callan, Tim & Smeeding, Tim & Tsakloglou, Panos, 2008. "Short-Run Distributional Effects of Public Education Transfers to Tertiary Education Students in Seven European Countries," IZA Discussion Papers 3557, Institute for the Study of Labor (IZA). [Downloadable!]
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