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The impact of the crisis on unemployment and household income in Italy and Spain

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  • Tindara Addabbo

    ()
    (University of Modena & Reggio Emilia)

  • Rosa García-Fernández

    (University of Granada)

  • Carmen Llorca-Rodríguez

    (University of Granada)

  • Anna Maccagnan

    (University of Modena & Reggio Emilia)

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    Abstract

    This paper aims at evaluating the effect of the current economic crisis on household income and poverty in Spain and Italy. As data on 2009 income has not been released yet, we have carried out a microsimulation analysis using data drawn for the European Statistics on Income and Living Conditions Survey of 2007 and data of the Labour Force Survey of 2009. We propose a technique that is based on the imputation of transition probabilities into different labour market status as calculated on 2009 data on the data for 2007 and income simulation. Our results reveal a 3% reduction in equivalised household income in Spain and a 1.16% reduction in Italy. Despite this difference, for both countries the Gini Index increases from 0.31 to 0.32, suggesting that the Spanish unemployment protection system is more generous than the Italian one.

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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2011-235.pdf
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    Bibliographic Info

    Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 235.

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    Length: 28 pages
    Date of creation: 2011
    Date of revision:
    Handle: RePEc:inq:inqwps:ecineq2011-235

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    Related research

    Keywords: unemployment; crisis; simulation; poverty.;

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    1. Anonymous, 2009. "2009 Annual Agricultural Outlook," Staff Papers 47453, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Andrea Brandolini & Piero Cipollone & Eliana Viviano, 2006. "Does The Ilo Definition Capture All Unemployment?," Journal of the European Economic Association, MIT Press, vol. 4(1), pages 153-179, 03.
    3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
    4. Stephen R.G. Jones & W. Craig Riddell, 2002. "Unemployment and Non-Employment: Heterogeneities in Labour Market States," Department of Economics Working Papers 2002-05, McMaster University.
    5. White,Halbert, 1994. "Estimation, Inference and Specification Analysis," Cambridge Books, Cambridge University Press, number 9780521252805, April.
    6. Amartya Sen, 1997. "Inequality, Unemployment and Contemporary Europe," STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers 07, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    7. Herwig Immervoll & Horacio Levy & Christine Lietz & Daniela Mantovani & Holly Sutherland, 2006. "The sensitivity of poverty rates to macro-level changes in the European Union," Cambridge Journal of Economics, Oxford University Press, vol. 30(2), pages 181-199, March.
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