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Redistribution Policy and Inequality in Portugal (2008-2017)

Author

Listed:
  • Carlos Farinha Rodrigues

    (Universidade de Lisboa, CEMAPRE School of Economics and Management)

  • Isabel Andrade

    (Regent’s University London)

Abstract

The aim of this paper is to analyse in detail the redistributive effects of pensions, other social benefits, and taxes in Portugal during the 2008 -17 period, which includes the eco-nomic crisis of 2010 -13 and the recovery starting in 2014. It examines the successive income distributions and their transitions from Market to Disposable income. Pensions are analysed individually because of their growing importance, but they also make the highest contribution to the decrease in income inequality. The rise in the dimension, efficacy, and progressivity of taxes explains the relative stability of the Gini coefficient during the crisis. After 2014, Disposable income inequality decreased significantly, helped by the economic recovery, falling unemployment, and improving income policies.

Suggested Citation

  • Carlos Farinha Rodrigues & Isabel Andrade, 2020. "Redistribution Policy and Inequality in Portugal (2008-2017)," Notas Económicas, Faculty of Economics, University of Coimbra, issue 50, pages 23-42, Julho.
    • Handle: RePEc:gmf:journl:y:2020:i:50:p:23:42
    DOI: 10.14195/2183-203X_50_3
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    More about this item

    Keywords

    Income inequality; redistributive policies: tax-benefit system; Portugal.;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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