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  1. The short-term distributional impact of COVID-19 in Malawi
    Published: November 2021
    Publisher:  Institute for Social and Economic Research, University of Essex, Colchester, Essex, UK

    This study analyses the short-term distributional effects of COVID-19 on household incomes in Malawi. Growth is expected to fall due to the pandemic. The Malawi annual gross domestic product growth rate for 2020 has been revised downwards from 5.5%... more

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    This study analyses the short-term distributional effects of COVID-19 on household incomes in Malawi. Growth is expected to fall due to the pandemic. The Malawi annual gross domestic product growth rate for 2020 has been revised downwards from 5.5% to 1.9%. According to the government of Malawi, unemployment in Malawi is expected to increase in 2020 compared to 2019 as companies begin to lay-off employees due to both demand and supply shocks. Our study investigates the impact of changes in employment due to the COVID-19 crisis on inequality and poverty using the recently developed tax-benefit microsimulation model for Malawi, MAMOD. In assessing the impact of the job losses, three employment shock scenarios are considered. Our study leverages on the novel High Frequency Phone Survey for COVID-19 that was implemented from June 2020 and the recently released Integrated Household Survey which was collected just before the COVID-19 crisis. We find that the poverty measured by headcount and poverty gap increases because of the COVID-19 outbreak. The pandemic has also worsened inequality as the Gini Coefficient rose. We further find that the corrective measures implemented the Emergency Cash Transfer, were able to subdue the impact of the crisis especially at the bottom of the income distribution.

     

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    Source: Union catalogues
    Language: English
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    hdl: 10419/259519
    Series: EUROMOD working paper series ; EM 21, 07
    Subjects: COVID-19; income distribution; poverty; fiscal policy; Malawi
    Scope: 1 Online-Ressource (circa 35 Seiten), Illustrationen
  2. A bivariate relative poverty line for time and income poverty
    detecting intersectional differences using distributional copulas
    Published: [2021]
    Publisher:  Georg-August-Universität Göttingen, Göttingen

    Empirical research on poverty today often goes beyond a focus on income to consider other dimensions of well-being. However, relatively few multidimensional poverty measures explicitly consider time, despite its particular relevance to women's double... more

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    Empirical research on poverty today often goes beyond a focus on income to consider other dimensions of well-being. However, relatively few multidimensional poverty measures explicitly consider time, despite its particular relevance to women's double burden of paid and unpaid work. We construct a bivariate relative poverty line between income and leisure, based on their joint distribution in the population. Because the strength of the dependence between income and leisure influences the vulnerability to poverty, we incorporate distributional regression into copula models. Utilizing the 2018 Mexican National Survey of Households, Income and Expenses, we investigate differences in bidimensional poverty with respect to gender and ethnicity. We find that the fraction defined as bidimensional poor is 18 percentage points higher than the poverty rate computed from separate time and income measures. Those below the relative but above the absolute poverty line are primarily non-indigenous women whose poverty is made visible by our approach.

     

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    hdl: 10419/251337
    Series: University of Göttingen working paper in economics ; no. 435 (December 2021)
    Subjects: bivariate relative poverty line; bivariate distributional copulamodel; income distribution; leisure time distribution; Mexican NationalSurvey of Households; intersectionality
    Scope: 1 Online-Ressource (circa 55 Seiten), Illustrationen
  3. Flat tax reforms in Italy
    Published: [2020]
    Publisher:  Università die Verona, Department of Economics, [Verona]

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    Series: Working paper series / Department of Economics, University of Verona ; WP number 21 (December 2020)
    Subjects: personal income tax; income distribution; progressive tax; labor supply; heterogeneous agents OLG models
    Scope: 1 Online-Ressource (circa 30 Seiten)
  4. Brexit and labour market inequalities
    potential spatial and occupational impacts
    Published: [2021]
    Publisher:  Institute for Fiscal Studies, London

    In this paper we examine the possible distributional impacts of new trade barriers associated with the new Trade and Cooperation Agreement governing relations between the UK and EU after Brexit. We use a model of labour demand that incorporates... more

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    In this paper we examine the possible distributional impacts of new trade barriers associated with the new Trade and Cooperation Agreement governing relations between the UK and EU after Brexit. We use a model of labour demand that incorporates input-output links across industries, and that allows for demand substitution by firms and consumers and worker reallocation across industries. We find that workers’ exposure is moderately increasing across the earnings distribution. Exposure is greater for men than for women as they are more likely to work in manufacturing industries that are relatively harder hit by new trade barriers. Looking across areas, we find that exposure to new Brexit trade barriers is uncorrelated with measures of local deprivation and the impacts of the recent COVID-19 pandemic.

     

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    Series: Working paper / lnstitute for Fiscal Studies ; 21, 42
    Subjects: Trade; income distribution; inequality
    Scope: 1 Online-Ressource (circa 22 Seiten), Illustrationen
  5. The inequality (or the growth) we measure
    data gaps and the distribution of incomes
    Published: 24 March 2022
    Publisher:  Centre for Economic Policy Research, London

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    Series: Array ; DP17135
    Subjects: income distribution; data gaps; Surveys; National Accounts; Administrative data; LatinAmerica
    Scope: 1 Online-Ressource (circa 41 Seiten), Illustrationen
  6. Chasing the shadow: the evaluation of unreported wage payments in Latvia
    Published: February 2, 2022
    Publisher:  Latvijas Banka, Riga

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    ISBN: 9789934578410
    Series: Working paper / Latvijas Banka ; 2022,1
    Subjects: unreported wage; tax evasion; Mincer earning regression; income distribution
    Scope: 1 Online-Ressource (circa 48 Seiten), Illustrationen
  7. The future of taxation in changing labour markets
    Published: 2022
    Publisher:  European Commission, Seville

    This paper provides a first assessment of the fiscal and distributional consequences of the ongoing structural changes in the labour markets of EU Member States, mostly driven by technological progress and ageing. Cedefop 2020 Skill forecasts,... more

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    This paper provides a first assessment of the fiscal and distributional consequences of the ongoing structural changes in the labour markets of EU Member States, mostly driven by technological progress and ageing. Cedefop 2020 Skill forecasts, EUROSTAT population projections and the forecast on pension expenditures from the 2021 Ageing Report depict a scenario of an ageing population, an inverted U-shaped unemployment trend and potentially polarising labour markets, the latter mostly driven by a surge in high-skill occupations. This analysis makes use of the microsimulation model EUROMOD and reweighting techniques to analyse the fiscal and distributional impacts of these trends, given the current tax-benefit policies. The results suggest that the macro trends will increase pressure on government budgets. The analysis also shows evidence of the capacity of the current tax-benefit systems to counterbalance the increases in income inequality and poverty risks triggered by the expected future labour markets developments.

     

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    hdl: 10419/280861
    Series: JRC working papers on taxation and strucutral reforms ; no 2022, 02
    JRC technical report
    Subjects: income distribution; budget; deficit; job polarisation; population ageing
    Scope: 1 Online-Ressource (circa 34 Seiten), Illustrationen
  8. A safe harbor
    wealth-income ratios in Switzerland over the 20th century and the role of housing prices
    Published: 21 October 2021
    Publisher:  Centre for Economic Policy Research, London

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    Series: Array ; DP16660
    Subjects: wealth-income ratio; income distribution; Economic Growth; housing prices
    Scope: 1 Online-Ressource (circa 82 Seiten), Illustrationen
  9. Monetary policy and racial inequality
    Published: [2021]
    Publisher:  Center for Advanced Studies on the Foundations of Law and Finance, House of Finance, Goethe University, Frankfurt am Main, Germany

    This paper aims at an improved understanding of the relationship between monetary policy and racial inequality. We investigate the distributional effects of monetary policy in a unified framework, linking monetary policy shocks both to earnings and... more

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    This paper aims at an improved understanding of the relationship between monetary policy and racial inequality. We investigate the distributional effects of monetary policy in a unified framework, linking monetary policy shocks both to earnings and wealth differentials between black and white households. Specifically, we show that, although a more accommodative monetary policy increases employment of black households more than white households, the overall effects are small. At the same time, an accommodative monetary policy shock exacerbates the wealth difference between black and white households, because black households own less financial assets that appreciate in value. Over multi-year time horizons, the employment effects are substantially smaller than the countervailing portfolio effects. We conclude that there is little reason to think that accommodative monetary policy plays a significant role in reducing racial inequities in the way often discussed. On the contrary, it may well accentuate inequalities for extended periods.

     

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    hdl: 10419/244695
    Series: LawFin working paper ; no. 15
    Subjects: monetary policy; racial inequality; income distribution; wealth distribution; wealth effects
    Scope: 1 Online-Ressource (circa 41 Seiten), Illustrationen
  10. Structural features of the Mozambique economy through the lens of a 2019 social accounting matrix
    Published: December 2022
    Publisher:  United Nations University World Institute for Development Economics Research, Helsinki, Finland

    This study presents and discusses structural features of the Mozambique economy through the lens of a recently constructed 2019 social accounting matrix (SAM). This is an important reality check of the SAM construction process since it brings... more

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    This study presents and discusses structural features of the Mozambique economy through the lens of a recently constructed 2019 social accounting matrix (SAM). This is an important reality check of the SAM construction process since it brings together various data sources that are not necessarily consistent with each other into a single framework. A number of dimensions are explored including industry composition and factor earnings, imports and exports, household income and expenditure and some labour market data. Agriculture remains a dominant industry in Mozambique accounting for over 70 per cent of employment although its contribution to GDP is about 25 per cent. On the other hand, services, public and private together, represent 48 per cent of GDP and 21 per cent of employment. Manufacturing plays a minor role at 10 per cent of GDP and just over 4 per cent of employment, while mining with just over 11 per cent of GDP, accounts for just over 1 per cent of employment. In spite of the importance of agriculture for employment, a little over a third of household income is earned in rural areas. Some simple multiplier calculations show low economic integration.

     

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    ISBN: 9789292672980
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    hdl: 10419/273959
    Series: WIDER working paper ; 2022, 165
    Subjects: social accounting matrix; national accounts; supply-use table; balance of payments; labour force survey; income distribution
    Scope: 1 Online-Ressource (circa 29 Seiten), Illustrationen
  11. Evolution of inequality in Nigeria
    a tale of falling inequality, rising poverty and regional heterogeneity
    Published: December 2022
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    Recent research on Nigeria indicates declining income inequality. In contrast, anecdotal evidence suggests that only the upper class has benefited from economic growth in Nigeria over time. The disconnect between these findings and anecdotal... more

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    Recent research on Nigeria indicates declining income inequality. In contrast, anecdotal evidence suggests that only the upper class has benefited from economic growth in Nigeria over time. The disconnect between these findings and anecdotal evidence, and the limitation in how inequality was estimated in the past literature are the motivation for our research. First, we consider if inequality decreased in Nigeria between 2010 and 2018. We then explore how changes in inequality relate to changes in consumption and poverty. In addition, we examine whether there has been convergence in inequality and consumption across regions over this period. Our last question is focused on identifying the sources/factors contributing to inequality in Nigeria over time. Leveraging data from the four waves of the Nigeria General Household Panel Survey (GHS) and carefully measuring inequality using consumption expenditure, our results suggest that inequality has decreased and median consumption expenditure increased. At the same time, poverty incidence and severity increased precipitously. Our findings suggest convergence in estimated inequality by regions but we do not find evidence of convergence across regions in consumption or poverty levels. We also find that durable goods expenditures are the biggest contributor to inequality across expenditure sources. Finally, our results suggest that education and living in an urban area are significant contributors to inequality but their effects have declined over time.

     

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    hdl: 10419/272464
    Series: Discussion paper series / IZA ; no. 15837
    Subjects: inequality; Gini; Nigeria; income distribution; poverty; regional disparities
    Scope: 1 Online-Ressource (circa 24 Seiten), Illustrationen
  12. Not that basic
    how level, design and context matter for the redistributive outcomes of universal basic income
    Published: February 2023
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    Proponents of a basic income (BI) claim that it could bring significant reductions in financial poverty, on top of many other benefits, including greatly reduced administrative complexity and cost. Using microsimulation analysis in a comparative... more

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    Proponents of a basic income (BI) claim that it could bring significant reductions in financial poverty, on top of many other benefits, including greatly reduced administrative complexity and cost. Using microsimulation analysis in a comparative two-country setting, we show that the potential poverty-reducing impact of BI strongly depends on exactly how and where it is implemented. Implementing a BI requires far more choices than advocates seem to realize. The level at which the BI is set matters, but its exact specification matters even more. Which parts of the existing tax-benefit system are maintained, and which parts are abolished, modified or replaced? The impact of a BI, be it a low or a high one, thus strongly depends on the characteristics of the system that it is (partially) replacing or complementing, as well as the socio-economic context in which it is introduced. Some versions of BI could potentially help to reduce poverty but always at a significant cost and with substantial sections of the population incurring significant losses, which matters for political feasibility. A partial basic income complementing existing provisions appears to make more potential sense than a full basic income replacing them. The simplicity of BI, however, tends to be vastly overstated.

     

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    hdl: 10419/272579
    Series: Discussion paper series / IZA ; no. 15952
    Subjects: basic income; poverty; income distribution; policy interaction; microsimulation
    Scope: 1 Online-Ressource (circa 33 Seiten), Illustrationen
  13. Debt, inflation and the shape of the global pandemic recovery
    Published: [2022]
    Publisher:  [The University of Western Australia, Economics], [Crawley, WA]

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    Series: Discussion paper / The University of Western Australia, Economics ; 22, 03
    Subjects: Supply side shock; inflation; productivity; automation; income distribution; tax; transfers; general equilibrium analysis
    Scope: 1 Online-Ressource (circa 39 Seiten), Illustrationen
  14. Decomposition of the changes in household disposable income distribution in China
    Published: January 2023
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    Studies have shown that the previously growing inequality in China has stabilized and even declined since 2008 (Kanbur et al., 2021), nevertheless, the drivers of the latest trans-formation in income inequality remain to be unraveled. We address this... more

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    Studies have shown that the previously growing inequality in China has stabilized and even declined since 2008 (Kanbur et al., 2021), nevertheless, the drivers of the latest trans-formation in income inequality remain to be unraveled. We address this research gap by examining the changes in the distribution of household disposable income and its drivers in China from 2010 to 2016. We apply the distributional decomposition method proposed by Bourguignon et al. (2008) and Sologon et al. (2021), and quantify the contribution of all factors into four general dimensions, (1) demographic composition, (2) labor market structure, (3) price and return, and (4) governmental transfers. This study considers not only the individual labor income as with existing literature, but also models other family incomes and social transfers to reflect the real economic conditions more accurately. The decomposition results show that all four factors contribute positively to the decline in income inequality during the period studied. The changes in urban labor market structure, specifically the general forms of employment, occupational and industrial structure, have been contributing as inequality augmenting factors.

     

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    hdl: 10419/272541
    Series: Discussion paper series / IZA ; no. 15914
    Subjects: income distribution; decomposition; income inequality; microsimulation; overtime comparison; labor market structure; demographic structure
    Scope: 1 Online-Ressource (circa 34 Seiten), Illustrationen
  15. Structural reforms and income distribution
    new evidence for OECD countries
    Published: January 2023
    Publisher:  CESifo, Munich, Germany

    This paper examines the impact of labour market and product market reforms on income inequality for 25 OECD countries, using the local projections approach and updates of the reform indicators put together by Duval et al. (2018) until 2020. Our... more

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    This paper examines the impact of labour market and product market reforms on income inequality for 25 OECD countries, using the local projections approach and updates of the reform indicators put together by Duval et al. (2018) until 2020. Our results suggest that both types of (endogenized) reforms cause more income inequality. Consistent with this finding is that counter-reforms lead to less income inequality. However, the inequality-raising effects of reforms occur especially in countries that have below median levels of social spending; in countries where social spending is above the sample median, the effect of reform is mostly statistically insignificant.

     

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    hdl: 10419/271858
    Series: CESifo working papers ; 10214 (2023)
    Subjects: structural reforms; income distribution; local projections; nonlinearities
    Scope: 1 Online-Ressource (circa 57 Seiten), Illustrationen
  16. Tributação indireta
    alíquotas efetivas e incidência sobre as famílias
    Published: dezembro de 2022
    Publisher:  Instituto de Pesquisa Econômica Aplicada, Brasília

    The text presents estimate of the tax incidence, especially the indirect one, on the income of families according to data from the last Consumer Expenditure Survey (POF) of 2017-2018. For this purpose, the values of the taxes on income and equity... more

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    The text presents estimate of the tax incidence, especially the indirect one, on the income of families according to data from the last Consumer Expenditure Survey (POF) of 2017-2018. For this purpose, the values of the taxes on income and equity calculated in the survey are used, as well as expenditure on consumer goods and services, to which effective indirect tax rates are applied. The tax rates are estimated based on a developed methodology that considers the taxes on inputs and capital goods present in the final demand products, based on the Input-Output Tables. A translator is also developed between the table products and the countless goods and services whose consumption is determined in the POF. The results show that the regressive effect of indirect taxes predominates in the redistributive effect of the tax system as a whole, that is, it surpasses the small redistributive effect of direct taxation. The aim is also to identify the most burdened expenditure items and the effects of the design of indirect taxes, which include exemptions and lower incidences, on the regressive nature of indirect taxes. At the end of the paper, it is argued that the path to greater equity is to expand direct and its progressivity, keeping in mind that indirect taxes are a key part of social protection in a country that has been showing a positive redistributive performance.

     

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    Source: Union catalogues
    Language: Portuguese
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/284879
    Series: Texto para discussão / Ipea ; 2823
    Subjects: Indirect taxation; income distribution; tax incidence
    Scope: 1 Online-Ressource (circa 40 Seiten), Illustrationen
  17. Considerações distributivas em análise custo-benefício
    Published: fevereiro de 2023
    Publisher:  Instituto de Pesquisa Econômica Aplicada, Rio de Janeiro

    This work assesses the possibilities of including distributive considerations into cost-benefit analysis (CBA), it summarizes the favourable and contrary arguments existing in the literature, as well how it can be done. A survey is also carried out... more

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    This work assesses the possibilities of including distributive considerations into cost-benefit analysis (CBA), it summarizes the favourable and contrary arguments existing in the literature, as well how it can be done. A survey is also carried out on how the topic is treated by agencies and organizations that practice CBA to evaluate investment projects. The evaluations of the theoretical lines and the practice adopted in several agencies indicate that the best choice to combine economic efficiency analysis with distributive concerns for the evaluation of projects is achieved through the adoption of an hybrid criteria. This would involve the execution of the traditional CBA, evaluating aspects of efficiency, together with an analysis of the project's distributive impact, that could be done through a cost and benefit accounting matrix or by calculating indicators of impact on poverty and inequality. The joint elaboration of the two analyses would guarantee the consistency of these regarding the identified costs and benefits and also regarding the affected population.

     

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    Language: Portuguese
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    hdl: 10419/284906
    Series: Texto para discussão / Ipea ; 2850
    Subjects: cost-benefit analysis; distributive impact; income distribution; allocative efficiency; distributive weights
    Scope: 1 Online-Ressource (circa 38 Seiten), Illustrationen
  18. The South African personal income tax base, 2011-2018
    income and taxable income, adjusted for retirement fund and medical expense reporting changes
    Published: [2023]
    Publisher:  SALDRU, Southern Africa Labour and Development Research Unit, Cape Town, South Africa

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    hdl: 11090/1024
    Series: Working paper series / SALDRU, Southern Africa Labour and Development Research Unit ; number 291
    Subjects: statistics of income; income distribution; personal income tax
    Scope: 1 Online-Ressource (circa 31 Seiten), Illustrationen
  19. Automation and social impacts
    winners and losers : background paper for The State of Food and Agriculture 2022
    Published: 2022
    Publisher:  Food and Agriculture Organization of the United Nations, Rome

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    ISBN: 9789251370742
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    Series: FAO agricultural development economics working paper ; 22, 09 (November 2022)
    Subjects: digital technology; automation; labour; income distribution
    Scope: 1 Online-Ressource (circa 50 Seiten), Illustrationen
  20. Economics of adoption for digital automated technologies in agriculture
    background paper for The State of Food and Agriculture 2022
    Published: 2022
    Publisher:  Food and Agriculture Organization of the United Nations, Rome

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    ISBN: 9789251370803
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    Series: FAO agricultural development economics working paper ; 22, 10 (November 2022)
    Subjects: digital technology; automation; sustainability; labour; income distribution
    Scope: 1 Online-Ressource (circa 48 Seiten), Illustrationen
  21. The South African personal income tax base, 2011-2018
    income and taxable income, adjusted for retirement fund and medical expense reporting changes
    Published: March 2023
    Publisher:  United Nations University World Institute for Development Economics Research, Helsinki, Finland

    Tax administration statistics now provide considerably more complete and reliable measures of South African personal income and its distribution than the available household or other survey sources. However, there are difficulties in using tax data... more

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    Tax administration statistics now provide considerably more complete and reliable measures of South African personal income and its distribution than the available household or other survey sources. However, there are difficulties in using tax data across time, as both policy and reporting changes influence the administrative statistics of income. This paper uses two sets of adjustments to generate a consistent personal income series for the 2011-2018 period: upward adjustments to published statistics on assessed taxpayers to provide estimates consistent with the overall tax base, and adjustments for retirement contribution and medical expense reporting changes in 2013, 2015, and 2017 that affect the calculation of taxable income and income before deductions. About half of all individuals reporting income to the South African Revenue Service are contributors to retirement funds, and just over a quarter qualify for medical scheme or medical expense tax benefits. The resulting adjusted income distribution estimates show that the tax base increased robustly relative to GDP over this period, that income shifted towards older and higher real income taxpayers, and that income inequality increased.

     

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    Source: Union catalogues
    Language: English
    Media type: Ebook
    Format: Online
    ISBN: 9789292673512
    Other identifier:
    hdl: 10419/283739
    Series: WIDER working paper ; 2023, 43
    Subjects: statistics of income; income distribution; personal income tax
    Scope: 1 Online-Ressource (circa 26 Seiten), Illustrationen
  22. International migration and income inequality
    Published: March 2023
    Publisher:  United Nations University World Institute for Development Economics Research, Helsinki, Finland

    In this paper we explore the links between international migration and income inequality. After presenting a simple model which considers the role of income distribution in individual decisions to migrate, we estimate a set of models on the... more

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    In this paper we explore the links between international migration and income inequality. After presenting a simple model which considers the role of income distribution in individual decisions to migrate, we estimate a set of models on the determinants of yearly bilateral migration from a very large pool of countries in the period 1960-2019. The empirical results confirm that inequality-in both origin and destination countries-significantly shapes individual choices about where, and whether, to migrate. We find that the effect of inequality at both ends of migration corridors is heterogeneous across countries at different levels of development, most likely due to differences in migration barriers and in the patterns of migrants' self-selection. In the second part of the study, we explore the direct effect of international migration on global inequality, by assessing how the current level of migration in the world has likely affected income inequality between and within nations. By adopting a counterfactual methodology, we find that migration flows lead to lower between-country inequality and higher within-country inequality, compared with a scenario with no migration. The overall impact is a negligible reduction in global inequality. The impact of migration on inequality, although small, tends to increase over time.

     

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    Source: Union catalogues
    Language: English
    Media type: Ebook
    Format: Online
    ISBN: 9789292673499
    Other identifier:
    hdl: 10419/283737
    Series: WIDER working paper ; 2023, 41
    Subjects: international migration; inequality; income distribution
    Scope: 1 Online-Ressource (circa 34 Seiten), Illustrationen
  23. Causal impacts of government social expenditure on infant mortality in Latin America and the Caribbean
    new evidence from 1990-2017 data
    Published: 2021
    Publisher:  UNICEF Office of Research - Innocenti, Florence, Italy

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    Series: Office of Research - Innocenti working paper ; WP-2021, 09 (November 2021)
    Subjects: Caribbean; income distribution; infant mortality; infant mortality rate; Latin America; natural resources; social expenditure
    Scope: 1 Online-Ressource (circa 44 Seiten), Illustrationen
  24. Inflation as redistribution
    creditors, workers, policymakers
    Published: April 2023
    Publisher:  [Forum on Capital as Power], [Erscheinungsort nicht ermittelbar]

    This paper is part of a dialogue with Blair Fix on how inflation redistributes income between creditors and workers and the way in which monetary policy affects this process. In his 2023 paper, 'Inflation! The Battle Between Creditors and Workers',... more

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    This paper is part of a dialogue with Blair Fix on how inflation redistributes income between creditors and workers and the way in which monetary policy affects this process. In his 2023 paper, 'Inflation! The Battle Between Creditors and Workers', Fix shows, first, that the impact of U.S. inflation on creditor-worker distribution has been historically contingent (favouring workers during some periods and creditors in others); and second, that since the 1970s, Fed policy to combat inflation with higher interest rates boosted the yield of creditors relative to the wage rate of workers. Our own research suggests that these conclusions might be too general. We point out that creditors are not a monolithic class and that different types of creditors are affected differently, and often inversely, by the rate of interest. We illustrate that, contrary to bank depositors, bondholders tend to lose from inflation. And we show that monetary policy, at least in the United States, appears to follow rather than determine market yields. More generally, since most capitalists nowadays are lenders as well as borrowers, and given that 'dominant capital' profits from the full spectrum of investment instruments, we wonder if 'creditors' is still a useful category for analysing redistribution in general and inflationary redistribution in particular.

     

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    Other identifier:
    hdl: 10419/270867
    Series: Working papers on capital as power ; no. 2023, 01
    Subjects: Blair Fix; bond yields; creditors; income distribution; inflation; interest rate; labour; monetary policy; total returns wages
    Scope: 1 Online-Ressource (circa 23 Seiten), Illustrationen
  25. Endogenous business cycles and economic policy
    Author: Skott, Peter
    Published: 2023
    Publisher:  University of Massachusetts Amherst, Amherst

    This paper examines the dynamics of Keynesian models that incorporate feedback effects from the labor market to income distribution, investment, aggregate demand and output. A baseline version of the model can generate endogenous growth cycles, but... more

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    This paper examines the dynamics of Keynesian models that incorporate feedback effects from the labor market to income distribution, investment, aggregate demand and output. A baseline version of the model can generate endogenous growth cycles, but cumulative divergence and economic collapse also become possible for plausible parameter values. Extensions of the model that include monetary and Öscal policy show greater robustness: the local instability of the stationary point leads to limit cycles (rather than complete collapse), even when large, destabilizing changes are made to parameters describing the private sector. The robustness of the general approach is reinforced by the endogeneity of the Öscal and monetary policy rules.

     

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    Language: English
    Media type: Book
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    Other identifier:
    hdl: 10419/283957
    Series: Economics Department working paper series ; 2023, 3
    Subjects: growth cycles; Harrodian instability; income distribution; Taylor rule; fiscal policy
    Scope: 1 Online-Ressource (circa 28 Seiten)