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A Non-Parametric Microsimulation Approach to Assess Changes in Inequality and Poverty

  • Rob Vos
  • Marco V. Sánchez
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    This paper presents a non-parametric microsimulation methodology for assessing the determinants of changes in income inequality and poverty. One great advantage of this method over alternatives is that it is not very demanding in terms of modelling labour supply and household behaviour while still providing a plausible link between changes in overall labour market conditions and the full household income distribution. The paper also shows how the method can be adapted to assess the poverty and inequality effects of changes in non-labour incomes (such as through a government transfer programme) and how it can be combined with economy-wide models.

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    File URL: http://www.un.org/esa/desa/papers/2010/wp94_2010.pdf
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    Paper provided by United Nations, Department of Economics and Social Affairs in its series Working Papers with number 94.

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    Length: 24 pages
    Date of creation: Mar 2010
    Date of revision:
    Handle: RePEc:une:wpaper:94
    Contact details of provider: Web page: http://www.un.org/en/development/desa/working-papers.html
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