Eirini Andriopoulou and Panos Tsakloglou
The paper analyses the effects of individual and household characteristics on current poverty status, while controlling for initial conditions, past poverty status and unobserved…
Abstract
The paper analyses the effects of individual and household characteristics on current poverty status, while controlling for initial conditions, past poverty status and unobserved heterogeneity in 14 European countries for the period 1994–2001, using the European Community Household Panel. The distinction between true state dependence and individual heterogeneity has important policy implications, since if the former is the main cause of poverty it may be crucial to break the ‘vicious circle’ of poverty using income-supporting social policies, whereas if it is the latter anti-poverty policies should focus primarily on education, training, development of personal skills and other labour market oriented policies. The empirical results are similar in qualitative terms but rather different in quantitative terms across the EU countries covered in the paper. State dependence remains significant in all model specifications, even after controlling for unobserved heterogeneity or when removing possible endogeneity bias. Higher poverty rates and higher poverty persistence are associated with particular welfare state regimes, although the link is substantially weakened when other explanatory variables are included in the analysis.
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Christos Koutsampelas and Panos Tsakloglou
The purpose of this paper is to examine the distributional implications of using full income instead of disposable income in the analysis of economic inequality. For that purpose…
Abstract
Purpose
The purpose of this paper is to examine the distributional implications of using full income instead of disposable income in the analysis of economic inequality. For that purpose the authors employ a very extensive list of noncash incomes with the aim of examining the distributional effects of noncash incomes and reassessing the level and structure of inequality under a comprehensive definition of income.
Design/methodology/approach
The study employs the microdata of the 2004/2005 Greek Household Budget Survey. The value of non‐monetary components was estimated using the appropriate statistical methods and econometric techniques. Tools of income distribution analysis were utilized for assessing the distributional consequences of adopting an extended definition of income.
Findings
The results indicate that both private and public noncash incomes are far more equally distributed than monetary income, but the inequality‐reducing effect of publicly‐provided services is stronger. Noncash incomes appear to accrue more heavily to younger and older individuals.
Research limitations/implications
The analysis uses the same equivalence scales for the analysis of both monetary income and full income. This treatment may be open to criticism in the case of in‐kind public transfers. Due to data limitations the authors do not take into account home‐produced services, as well as several in‐kind transfers such as the provision of elderly care.
Practical implications
The study argues in favor of moving beyond disposable income for measuring inequality and for the purposes of social policy design.
Originality/value
Even if several studies take into account particular noncash items, there is an important void in the distributional analysis of full income.
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Daniela Mantovani, Fotis Papadopoulos, Holly Sutherland and Panos Tsakloglou
This paper considers the effects on current pensioner incomes of reforms designed to improve the long-term sustainability of public pension systems in the European Union. We use…
Abstract
This paper considers the effects on current pensioner incomes of reforms designed to improve the long-term sustainability of public pension systems in the European Union. We use EUROMOD to simulate a set of common illustrative reforms for four countries selected on the basis of their diverse pension systems and patterns of poverty among the elderly: Denmark, Germany, Italy and the UK. The variations in fiscal and distributive effects on the one hand suggest that different paths for reform are necessary in order to achieve common objectives across countries, and on the other provide indications of the appropriate directions for reform in each case.
Manos Matsaganis, Cathal O’Donoghue, Horacio Levy, Manuela Coromaldi, Magda Mercader-Prats, Carlos Farinha Rodrigues, Stefano Toso and Panos Tsakloglou
The paper examines the effect of family transfers on child poverty in Greece, Italy, Spain and Portugal. Family transfers are defined as to include non-contributory child…
Abstract
The paper examines the effect of family transfers on child poverty in Greece, Italy, Spain and Portugal. Family transfers are defined as to include non-contributory child benefits, contributory family allowances and tax credits or allowances. The drive to reduce child poverty is of particular interest in southern Europe, where public support to poor families with children is often meagre or not available at all. The paper uses the European cross-country microsimulation model, EUROMOD, to assess the distributional impact of existing family transfers and to explore the scope for policy reforms, before it concludes with a discussion of key findings and policy implications.
This volume initiates a new collaboration between Research in Labor Economics (RLE) published by Elsevier Press and the Institute for the Study of Labor (IZA). Beginning 2006, the…
Abstract
This volume initiates a new collaboration between Research in Labor Economics (RLE) published by Elsevier Press and the Institute for the Study of Labor (IZA). Beginning 2006, the RLE series extends to two volumes per year. One volume will remain in the tradition of the series, consisting of empirical and theoretical contributions in labor economics, while the other volume will focus on specific policy questions. IZA has become one of the largest organizations of labor scholars worldwide while RLE is now a well-established publication containing labor economics research. We hope this new association will be a meaningful development for both IZA fellows and RLE readers.
Solomon W. Polachek and Konstantinos Tatsiramos
How individuals allocate their time between work and leisure has important implications regarding worker well-being. For example, more time at work means a greater return to human…
Abstract
How individuals allocate their time between work and leisure has important implications regarding worker well-being. For example, more time at work means a greater return to human capital and a greater proclivity to seek more training opportunities. At the same time, hours spent at work decrease leisure and depend on one's home environment (including parental background), health, past migration, and government policies. In short, worker well-being depends on trade-offs and is influenced by public policy. These decisions entail time allocation, effort, human capital investment, health, and migration, among other choices. This volume considers worker well-being from the vantage of each of these alternatives. It contains ten chapters. The first three are on time allocation and work behavior, the next three on aspects of risk in the earnings process, the next two on aspects of migration, the next one on the impact of tax policies on poverty, and finally the last chapter on the role of labor market institutions on sectoral shifts in employment.