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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. Willem Adema, 1999. "Net Social Expenditure," OECD Labour Market and Social Policy Occasional Papers 39, OECD Publishing.
  3. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  4. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
  5. Frank Cowell, 1998. "Measurement of inequality," LSE Research Online Documents on Economics 2084, London School of Economics and Political Science, LSE Library.
  6. 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.
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Cited by:
  1. Ivica Urban, 2014. "Contributions of taxes and benefits to vertical and horizontal effects," Social Choice and Welfare, Springer, vol. 42(3), pages 619-645, March.
  2. 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.
  3. 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).
  4. 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.
  5. 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.
  6. Heshmati, Almas, 2004. "The World Distribution of Income and Income Inequality," IZA Discussion Papers 1267, Institute for the Study of Labor (IZA).
  7. 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).
  8. Thomas Moutos & William Scarth, 2003. "Some Macroeconomic Consequences of Basic Income and Employment Subsidies," CESifo Working Paper Series 916, CESifo Group Munich.
  9. Almas Heshmati, 2006. "Continental And Sub-Continental Income Inequality," The IUP Journal of Applied Economics, IUP Publications, vol. 0(1), pages 7-52, January.
  10. 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.
  11. repec:ese:emodwp:em9-05 is not listed on IDEAS
  12. 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.
  13. repec:ese:emodwp:em4-05 is not listed on IDEAS
  14. 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).
  15. Immervoll, Herwig & Levy, Horacio & Lietz, Christine & Mantovani, Daniela & O'Donoghue, Cathal & Sutherland, Holly & Verbist, Gerlinde, 2006. "Household Incomes and Redistribution in the European Union: Quantifying the Equalising Properties of Taxes and Benefits," Economics Series 184, Institute for Advanced Studies.
  16. 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).
  17. Milanovic, Branko, 2007. "Ethical case and economic feasibility of global transfers," MPRA Paper 2587, University Library of Munich, Germany.

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