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Improving poverty reduction in Europe: what works best where?

Leventi, Chrysa and Sutherland, Holly and Tasseva, Iva Valentinova (2018) 'Improving poverty reduction in Europe: what works best where?' Journal of European Social Policy. ISSN 0958-9287

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Abstract

This article examines how income poverty is affected by changes to the scale of tax-benefit policies and which are the most cost-effective policies in reducing poverty or limiting its increase in seven diverse EU countries. We do that by measuring the implications of increasing/reducing the scale of each policy instrument, using microsimulation methods while holding constant the policy design and national context. We consider commonly applied policy instruments with a direct effect on household income: child benefits, social assistance, income tax lower thresholds and a benchmark case of rescaling the whole tax-benefit system. We find that the assessment of the most cost-effective instrument may depend on the measure of poverty used and the direction and scale of the change. Nevertheless, our results indicate that the options that reduce poverty most cost-effectively in most countries are increasing child benefits and social assistance, while reducing the former is a particularly poverty-increasing way of making budgetary cuts.

Item Type: Article
Uncontrolled Keywords: EU, microsimulation, policy reform, poverty, social and fiscal policy
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Social Sciences > Institute for Social and Economic Research
Depositing User: Elements
Date Deposited: 30 Oct 2018 15:00
Last Modified: 30 Oct 2018 15:00
URI: http://repository.essex.ac.uk/id/eprint/22906

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