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The sensitivity of poverty rates to macro-level changes in the European Union

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Author Info

  • Herwig Immervoll
  • Horacio Levy
  • Christine Lietz
  • Daniela Mantovani
  • Holly Sutherland

Abstract

The authors use the European Union-wide tax--benefit model, EUROMOD, to establish baseline rates of relative poverty in 1998 for each of the Member States and then explore their sensitivity to (a) an increase in unemployment, (b) real income growth and (c) an increase in earnings inequality. They find that poverty rates are sensitive to such 'macro-level' changes but that the size--and in some cases the direction--of the effect varies across countries. If such indicators are to be used in judging the effectiveness of social policies, it is important that differences in responsiveness are fully understood. Copyright 2006, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/cje/bei054
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Bibliographic Info

Article provided by Oxford University Press in its journal Cambridge Journal of Economics.

Volume (Year): 30 (2006)
Issue (Month): 2 (March)
Pages: 181-199

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Handle: RePEc:oup:cambje:v:30:y:2006:i:2:p:181-199

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Cited by:
  1. Bargain, Olivier & Callan, Tim, 2007. "Analysing the Effects of Tax-Benefit Reforms on Income Distribution: A Decomposition Approach," IZA Discussion Papers 3078, Institute for the Study of Labor (IZA).
  2. Mabbett, Deborah, 2004. "Fiscal stabilisers in Europe: the macroeconomic impact of tax and benefit systems," EUROMOD Working Papers EM7/04, EUROMOD at the Institute for Social and Economic Research.
  3. Elisa Baroni & Matteo Richiardi, 2007. "Orcutt’s Vision, 50 years on," LABORatorio R. Revelli Working Papers Series 65, LABORatorio R. Revelli, Centre for Employment Studies.
  4. Alpar Lošonc, 2006. "Is There an Opportunity to Establish the Social-Capitalism in the Post Socialist Transition?," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 53(4), pages 407-425, December.
  5. Mathias Dolls & Clemens Fuest & Andreas Peichl, 2010. "Wie wirken die automatischen Stabilisatoren in der Wirtschaftskrise? Deutschland im Vergleich zu anderen EU-Staaten und den USA," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 11(2), pages 132-145, 05.
  6. Dolls, Mathias & Fuest, Clemens & Peichl, Andreas, 2012. "Automatic stabilizers and economic crisis: US vs. Europe," Journal of Public Economics, Elsevier, vol. 96(3), pages 279-294.
  7. Lietz, Christine & Mantovani, Daniela, 2006. "Lessons from building and using EUROMOD," EUROMOD Working Papers EM5/06, EUROMOD at the Institute for Social and Economic Research.
  8. Manos Matsaganis & Chrysa Leventi, 2014. "Distributive Effects of the Crisis and Austerity in Seven EU Countries," ImPRovE Working Papers 14/04, Herman Deleeck Centre for Social Policy, University of Antwerp.
  9. Dolls, Mathias & Fuest, Clemens & Peichl, Andreas, 2009. "Wie wirken die automatischen Stabilisatoren in der Wirtschaftskrise? Deutschland im Vergleich mit der EU und den USA," IZA Standpunkte 19, Institute for the Study of Labor (IZA).
  10. Fuchs, Michael & Lietz, Christine, 2007. "Effect of changes in tax/benefit policies in Austria, 1998-2005," EUROMOD Working Papers EM3/07, EUROMOD at the Institute for Social and Economic Research.
  11. Tindara Addabbo & Rosa García-Fernández & Carmen Llorca-Rodríguez & Anna Maccagnan, 2011. "The impact of the crisis on unemployment and household income in Italy and Spain," Working Papers 235, ECINEQ, Society for the Study of Economic Inequality.

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