Skip to content

EUROMOD Working Paper Series EM3/11

The distributional impact of the crisis in Greece

Authors

Publication date

02 Aug 2011

Abstract

The severe economic crisis affecting Greece is widely expected to have a significant social impact in terms of greater inequality and increased poverty. We provide an early assessment of whether (and to what extent) this is the case. More specifically, we distinguish between two inter-related factors: on the one hand, the austerity measures taken to reduce fiscal deficits; on the other hand, the wider recession. Using the European tax-benefit model EUROMOD we attempt to quantify the distributional implications of both. With respect to the austerity measures, we focus on the changes introduced in spring 2010 affecting income tax, pension benefits and public sector pay. With respect to the wider recession, we model the effects of rising unemployment and inflation, as well as of lower earnings for self-employed workers and for employees of private firms. In simulating the impact of these changes on the distribution of incomes (and in estimating how the total burden of the crisis is shared across income groups), we take into account tax evasion and benefit non take up. We end by discussing the methodological pitfalls and policy implications of our research.

Subjects

Economics, Poverty, and Microsimulation

Paper download  


Related publications

  1. The distributional impact of the Greek crisis in 2010

    Manos Matsaganis and Chrysa Leventi

    1. Economics
    2. Poverty
    3. Microsimulation
  2. The distributional impact of the crisis in Greece

    Chrysa Leventi and Manos Matsaganis

    1. Economics
    2. Poverty
    3. Microsimulation

#520085


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