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The Distributional Impact of Austerity and the Recession in Southern Europe

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  • Manos Matsaganis
  • Chrysa Leventi

Abstract

Southern European welfare states are under stress. On the one hand, the recession has been causing unemployment to rise and incomes to fall. On the other hand, austerity has affected the capacity of welfare states to protect those affected. This paper assesses the distributional implications of the crisis in Greece, Spain, Italy and Portugal from 2009 to 2013. Using a microsimulation model, we disentangle the first-order effects of tax–benefit policies from the broader effects of the crisis, and estimate how its burden has been shared across income groups. We conclude by discussing the methodological pitfalls and policy implications of our research.

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  • Manos Matsaganis & Chrysa Leventi, 2014. "The Distributional Impact of Austerity and the Recession in Southern Europe," South European Society and Politics, Taylor & Francis Journals, vol. 19(3), pages 393-412, July.
    • Handle: RePEc:taf:fsesxx:v:19:y:2014:i:3:p:393-412
    DOI: 10.1080/13608746.2014.947700
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    Cited by:

    1. Cleon Tsimbos & Georgia Verropoulou & Dimitra Petropoulou, 2021. "Economic crisis and stillbirth ratios: Evidence from Southern Europe," PLOS ONE, Public Library of Science, vol. 16(11), pages 1-14, November.

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