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A comparison of the poverty impact of transfers, taxes, and market income across five OECD countries

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  • Sami Bibi
  • Jean-Yves Duclos

Abstract

This paper compares the poverty reduction impact of income sources, taxes and transfers across five OECD countries. Since the estimation of that impact can depend on the order in which the various income sources are introduced into the analysis, it is done by using the Shapley value. Estimates of the poverty reduction impact are presented in a normalized and un-normalized fashion, in order to take into into account the total as well as the per dollar impacts. The methodology is applied to data from the Luxembourg Income Study (LIS) database.

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Bibliographic Info

Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 380.

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Date of creation: Apr 2009
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Handle: RePEc:bge:wpaper:380

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Keywords: Poverty reduction; Transfers; Taxes; Shapley value; OECD countries;

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References

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  1. Lipton, Michael & Ravallion, Martin, 1993. "Poverty and policy," Policy Research Working Paper Series, The World Bank 1130, The World Bank.
  2. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, Econometric Society, vol. 44(2), pages 219-31, March.
  3. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, Econometric Society, vol. 52(3), pages 761-66, May.
  4. Makdissi, Paul & Therrien, Yannick & Wodon, Quentin, 2006. "L’impact des transferts publics et des taxes sur la pauvreté au Canada et aux États-Unis," L'Actualité Economique, Société Canadienne de Science Economique, Société Canadienne de Science Economique, vol. 82(3), pages 377-394, septembre.
  5. Timothy Smeeding, 2006. "Poor People in Rich Nations: The United States in Comparative Perspective," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 20(1), pages 69-90, Winter.
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Cited by:
  1. Michal Brzezinski, 2011. "Accounting for recent trends in absolute poverty in Poland: a decomposition analysis," Post-Communist Economies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 24(4), pages 465-475, December.
  2. Guillaume Allegre, 2012. "Work, Family or State? From wage inequalities to standard of living inequalities and inwork poverty in a European cross-country perspective," Sciences Po publications, Sciences Po 2012-12, Sciences Po.
  3. Guillaume Allègre, 2012. "Work, family or state ? from wage inequalitie ans in-work poverty in a european cross-country perspective," Documents de Travail de l'OFCE, Observatoire Francais des Conjonctures Economiques (OFCE) 2012-12, Observatoire Francais des Conjonctures Economiques (OFCE).

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