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A Microsimulation Evaluation Of Efficiency, Inequality, And Polarization Effects Of Implementing The Danish, The French, And The U.K. Redistribution System In Spain

Author

Listed:
  • Xisco Oliver

    (UIB - Universitat de les Illes Balears = Universidad de las Islas Baleares = University of the Balearic Islands)

  • Luca Piccoli

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Amadéo Spadaro

    (UIB - Universitat de les Illes Balears = Universidad de las Islas Baleares = University of the Balearic Islands, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper provides evidence about the effects of possible reforms of the Spanish direct redistribution system. We perform an ex-ante evaluation of the impact upon efficiency, income distribution, and polarization of the replacement of the Spanish system with the ones enforced in France, the U.K., and Denmark (corporatist, liberal, and social-democratic model respectively). The analysis is performed using microsimulation models in which labor supply is explicitly taken into account. The results show that the simulated scenarios have little impact on the efficiency of the economy. We find that each of the new systems would reduce income inequality. However, when we take into consideration income polarization, the effects of the reforms are ambiguous: in some cases we observe a tendency toward an increased polarization.

Suggested Citation

  • Xisco Oliver & Luca Piccoli & Amadéo Spadaro, 2010. "A Microsimulation Evaluation Of Efficiency, Inequality, And Polarization Effects Of Implementing The Danish, The French, And The U.K. Redistribution System In Spain," Post-Print halshs-00754463, HAL.
    • Handle: RePEc:hal:journl:halshs-00754463
    DOI: 10.1111/j.1475-4991.2009.00369.x
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    Cited by:

    1. Mario Holzner, 2012. "The Determinants of Income Polarization on the Household and Country Level across the EU," wiiw Working Papers 93, The Vienna Institute for International Economic Studies, wiiw.

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