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Robin Hood versus Piggy Bank: Income Redistribution in Portugal 2006-2010

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  • Carlos Farinha Rodrigues
  • Isabel Andrade

Abstract

The redistributive effect of the Portuguese welfare state through pensions, benefits and income taxes is investigated in detail over the 2006-2010 period using disposable income as benchmark. All social and fiscal policy instruments analysed contribute significantly to the reduction in inequality and poverty, with benefits other than pensions being the most cost-efficient. However, the impact of the economic crisis and austerity policies implemented from 2010 has reversed the previous trends and affected negatively the efficacy and efficiency of all instruments. Key words: Income inequality, Redistribution, Tax and expenditure policy, Portugal.JEL: C81, D31, H22, H55.

Suggested Citation

  • Carlos Farinha Rodrigues & Isabel Andrade, 2014. "Robin Hood versus Piggy Bank: Income Redistribution in Portugal 2006-2010," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 61(5), pages 617-630.
    • Handle: RePEc:voj:journl:v:61:y:2014:i:5:p:617-630:id:373
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    More about this item

    Keywords

    Income inequality; Redistribution; Tax and expenditure policy; Portugal;
    All these keywords.

    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
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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