Skip to content

EUROMOD Working Paper Series EM2/09

The distributional effects of tax-benefit policies under New Labour: a Shapley decomposition

Authors

Publication date

23 Mar 2009

Abstract

Using counterfactual microsimulations, Shapley decompositions of time change in inequality and poverty indices make it possible to disentangle and quantify the relative effect of tax-benefit policy changes, compared to all other effects including shifts in the distribution of market income. Using this approach also helps to clarify the different issues underlying the distributional evaluation of policy reforms. An application to the UK (1998-2001) confirms previous findings that inequality and depth of poverty would have increased under the first New Labour government, had important reforms like the extensions of income support and tax credits not been implemented. These reforms have also contributed to substantially reduce poverty among families with children and pensioners.

Subjects

Welfare Benefits and Microsimulation

Notes

working paper

Paper download  


Related publications

  1. The distributional effects of tax-benefit policies under New Labour: a decomposition approach

    Olivier Bargain

    1. Welfare Benefits
    2. Microsimulation
    3. Social Policy

#512219


Research home

Research home

News

Latest findings, new research

Publications search

Search all research by subject and author

Podcasts

Researchers discuss their findings and what they mean for society

Projects

Background and context, methods and data, aims and outputs

Events

Conferences, seminars and workshops

Survey methodology

Specialist research, practice and study

Taking the long view

ISER's annual report

Themes

Key research themes and areas of interest