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The Distributional Impact of Social Transfers in the European Union: Evidence from the ECHP

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Author Info

  • Heady, Christopher

    (affiliation not available)

  • Mitrakos, Theodore

    (affiliation not available)

  • Tsakloglou, Panos

    ()
    (Athens University of Economics and Business)

Abstract

Social transfers vary enormously across the EU, as has been demonstrated in earlier research. This paper analyses the comparative effects of cash transfers on inequality and poverty, using consistent household data. The analysis shows that the distributional impact of these transfers is greater in countries that spend a higher proportion of income on them but that there are other important determinants, including the distribution of funds between different types of transfers and the degree of targeting for each transfer.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 356.

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Length: 38 pages
Date of creation: Sep 2001
Date of revision:
Publication status: published in: Fiscal Studies, 2001, 22 (4), 547-565
Handle: RePEc:iza:izadps:dp356

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Keywords: household survey; social transfers; income distribution; European Union;

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References

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  1. Shorrocks, Anthony F, 1983. "The Impact of Income Components on the Distribution of Family Incomes," The Quarterly Journal of Economics, MIT Press, vol. 98(2), pages 311-26, May.
  2. Frank Cowell, 1998. "Measurement of inequality," LSE Research Online Documents on Economics 2084, London School of Economics and Political Science, LSE Library.
  3. Willem Adema, 1999. "Net Social Expenditure," OECD Labour Market and Social Policy Occasional Papers 39, OECD Publishing.
  4. Pyatt, Graham & Chen, Chau-nan & Fei, John, 1980. "The Distribution of Income by Factor Components," The Quarterly Journal of Economics, MIT Press, vol. 95(3), pages 451-73, November.
  5. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
  6. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
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Cited by:
  1. Callan, Tim & Keeney, Mary J. & Nolan, Brian & Maitre, Bertrand, 2004. "Why is Relative Income Poverty so High in Ireland?," Research Series, Economic and Social Research Institute (ESRI), number PRS53.
  2. Corak, Miles & Lietz, Christine & Sutherland, Holly, 2005. "The Impact of Tax and Transfer Systems on Children in the European Union," IZA Discussion Papers 1589, Institute for the Study of Labor (IZA).
  3. repec:ese:emodwp:em9-05 is not listed on IDEAS
  4. Thomas Moutos & William Scarth, 2003. "Some Macroeconomic Consequences of Basic Income and Employment Subsidies," CESifo Working Paper Series 916, CESifo Group Munich.
  5. Almas Heshmati, 2006. "Continental And Sub-Continental Income Inequality," The IUP Journal of Applied Economics, IUP Publications, vol. 0(1), pages 7-52, January.
  6. Bea Cantillon & Natascha Van Mechelen & Olivier Pintelon & Aaron Van den Heede, 2012. "Household Work Intensity and the Adequacy of Social Protection in the EU," Working Papers 1204, Herman Deleeck Centre for Social Policy, University of Antwerp.
  7. Milanovic, Branko, 2007. "Ethical case and economic feasibility of global transfers," MPRA Paper 2587, University Library of Munich, Germany.
  8. Tim Callan & Tim Smeeding & Panos Tsakloglou, 2007. "Distributional Effects of Public Education Transfers in Seven European Countries," Papers WP207, Economic and Social Research Institute (ESRI).
  9. Immervoll, Herwig & Richardson, Linda, 2011. "Redistribution Policy and Inequality Reduction in OECD Countries: What Has Changed in Two Decades?," IZA Discussion Papers 6030, Institute for the Study of Labor (IZA).
  10. Immervoll, Herwig & Levy, Horacio & Lietz, Christine & Mantovani, Daniela & O'Donoghue, Cathal & Sutherland, Holly & Verbist, Gerlinde, 2005. "Household Incomes and Redistribution in the European Union: Quantifying the Equalising Properties of Taxes and Benefits," IZA Discussion Papers 1824, Institute for the Study of Labor (IZA).
  11. Tim Callan & Tim Smeeding & Panos Tsakloglou, 2008. "Short-run distributional effects of public education transfers to tertiary education students in seven European countries," Education Economics, Taylor & Francis Journals, vol. 16(3), pages 275-288.
  12. M. Collado & IƱigo Iturbe-Ormaetxe, 2010. "Public transfers to the poor: is Europe really much more generous than the United States?," International Tax and Public Finance, Springer, vol. 17(6), pages 662-685, December.
  13. Heshmati, Almas, 2004. "The World Distribution of Income and Income Inequality," IZA Discussion Papers 1267, Institute for the Study of Labor (IZA).
  14. Fofack, Hippolyte & Monga, Celestin, 2004. "Dynamics of income inequality and welfare in Latvia in the late 1990s," Policy Research Working Paper Series 3336, The World Bank.
  15. Heshmati, Almas, 2004. "Data Issues and Databases Used in Analysis of Growth, Poverty and Economic Inequality," IZA Discussion Papers 1263, Institute for the Study of Labor (IZA).

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