Advanced Search
MyIDEAS: Login

Inequality and two decades of British tax and benefit reform

Contents:

Author Info

  • Tom Clark

    (Institute for Fiscal Studies)

  • Andrew Leicester

    ()
    (Institute for Fiscal Studies)

Abstract

Microsimulation methods are used to identify the contribution of tax and benefit reforms to the significant growth in UK income inequality since 1979. The total effect turns out to depend crucially on the counterfactual against which the reforms are assessed: compared with the alternative of pure price-indexation, the total effect of reform is small; by contrast, compared with a counterfactual in which benefits rose in line with national income (historically the case before 1979), the effect is substantial - approximately half the total rise in income inequality is explained. The impact of reforms on inequality has varied significantly over time: income tax cuts in the late 1970s and late 1980s increased inequality; direct tax rises in the early 1980s and 1990s, together with increases in means-tested benefits in the late 1990s, reduced it. The robustness of the results to sampling variation and to the measure of inequality used is also investigated.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

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

Volume (Year): 25 (2004)
Issue (Month): 2 (June)
Pages: 129-158

as in new window
Handle: RePEc:ifs:fistud:v:25:y:2004:i:2:p:129-158

Contact details of provider:
Postal: The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE
Phone: (+44) 020 7291 4800
Fax: (+44) 020 7323 4780
Email:
Web page: http://www.ifs.org.uk
More information through EDIRC

Order Information:
Postal: The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE
Email:

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Olivier Bargain & Mathias Dolls & Herwig Immervoll & Dirk Neumann & Andreas Peichl & Nico Pestel & Sebastian Siegloch, 2011. "Tax policy and income inequality in the U.S., 1978—2009: A decomposition approach," Working Papers 215, ECINEQ, Society for the Study of Economic Inequality.
  2. Bargain, Olivier & Callan, Tim & Doorley, Karina & Keane, Claire, 2013. "Changes in Income Distribution and the Role of Tax-benefit Policy During the Great Recession: An International Perspective," EUROMOD Working Papers em21/13, EUROMOD at the Institute for Social and Economic Research.
  3. Olivier Bargain, 2009. "The Distributional Effects of Tax-benefit Policies under New Labour: A Shapley Decomposition," Working Papers 200918, Geary Institute, University College Dublin.
  4. Stuart Adam & James Browne, 2010. "Redistribution, work incentives and thirty years of UK tax and benefit reform," IFS Working Papers W10/24, Institute for Fiscal Studies.
  5. Olivier Bargain & Tim Callan, 2007. "Analysing the Effects of Tax-benefit Reforms on Income Distribution: A Decomposition Approach," Working Papers 200728, Geary Institute, University College Dublin.
  6. Bargain, Olivier & Dolls, Mathias & Immervoll, Herwig & Neumann, Dirk & Peichl, Andreas & Pestel, Nico & Siegloch, Sebastian, 2013. "Partisan Tax Policy and Income Inequality in the U.S., 1979-2007," IZA Discussion Papers 7190, Institute for the Study of Labor (IZA).
  7. Brewer, Mike & Wren-Lewis, Liam, 2012. "Accounting for changes in income inequality: decomposition analyses for Great Britain, 1968-2009," ISER Working Paper Series 2012-17, Institute for Social and Economic Research.
  8. Wälde, Klaus & Lingens, Jörg, 2005. "Pareto - Improving Unemployment Policies," W.E.P. - Würzburg Economic Papers 63, University of Würzburg, Chair for Monetary Policy and International Economics.
  9. Stuart Adam, 2005. "Measuring the marginal efficiency cost of redistribution in the UK," IFS Working Papers W05/14, Institute for Fiscal Studies.
  10. Matsaganis, Manos & Flevotomou, Maria, 2007. "The impact of mortgage interest tax relief in the Netherlands, Sweden, Finland, Italy and Greece," EUROMOD Working Papers EM2/07, EUROMOD at the Institute for Social and Economic Research.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ifs:fistud:v:25:y:2004:i:2:p:129-158. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stephanie Seavers).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.