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Robin Hood versus Piggy Bank: Income redistribution in Portugal 2006-10

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  • Carlos Farinha Rodrigues
  • Isabel Andrade

Abstract

The redistributive effect of the Portuguese welfare state through pensions, benefits and taxes is investigated in detail over the 2006-10 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.

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File URL: http://pascal.iseg.utl.pt/~depeco/wp/wp282013.pdf
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Bibliographic Info

Paper provided by ISEG - School of Economics and Management, Department of Economics, University of Lisbon in its series Working Papers Department of Economics with number 2013/28.

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Date of creation: Dec 2013
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Handle: RePEc:ise:isegwp:wp282013

Contact details of provider:
Postal: Department of Economics, ISEG - School of Economics and Management, University of Lisbon, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL
Web page: https://aquila1.iseg.ulisboa.pt/aquila/departamentos/EC

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Keywords: income inequality; redistribution; tax and expenditure policy; Portugal.;

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  1. Mitja ÄŒok & Ivica Urban & Miroslav VerbiÄ, 2013. "Income Redistribution through Taxes and Social Benefits: The Case of Slovenia and Croatia," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 60(5), pages 667-686, September.
  2. Michael Förster & Peter Whiteford, 2009. "How much Redistribution do Welfare States Achieve? The Role of Cash Transfers and Household Taxes," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 7(3), pages 34-41, October.
  3. Ivica Urban, 2009. "Kakwani decomposition of redistributive effect: Origins, critics and upgrades," Working Papers 148, ECINEQ, Society for the Study of Economic Inequality.
  4. Nicole Attia & Valérie Bérenger, 2009. "European Integration and Social Convergence: A Qualitative Appraisal," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 56(1), pages 3-19, March.
  5. Carlos Farinha Rodrigues, 2009. "Efficacy of Anti-poverty and Welfare Programs in Portugal: the Joint Impact of the CSI and RSI," Working Papers Department of Economics 2009/42, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  6. Martin Werding, 2003. "After Another Decade of Reform: Do Pension Systems in Europe Converge?," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 1(1), pages 11-16, October.
  7. Marx, Ive & Salanauskaite, Lina & Verbist, Gerlinde, 2013. "The Paradox of Redistribution Revisited: And That It May Rest in Peace?," IZA Discussion Papers 7414, Institute for the Study of Labor (IZA).
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