Income inequality and redistribution in Lithuania: the role of policy, labour market, income and demographics

Nerijus  Černiauskas; Denisa Sologon; Cathal O’Donoghue; Linas Tarasonis

doi:10.1111/roiw.12546

Income inequality and redistribution in Lithuania: the role of policy, labour market, income and demographics

Nerijus Černiauskas, Denisa Sologon, Cathal O’Donoghue, Linas Tarasonis

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Résultats de recherche: Contribution à un journal › Article › Revue par des pairs

Résumé

We model the household disposable income distribution in Lithuania and explore the drivers of the increase in income inequality between 2007 and 2015. We quantify the contributions of four factors to changes in the disposable income distribution: (i) demographics; (ii) labour market structure; (iii) returns and prices; and (iv) tax-benefit system. Results show that the effects of the factors were substantial and reflected heterogeneous developments over two
sub-periods: changes in the tax and benefit system cushioned a rapid rise in market income inequality due to the global financial crisis during 2007-2011, but failed to do so during the subsequent years of economic expansion, when rising returns in the labour and capital markets significantly increased disposable income inequality. We also find that declining marriage rates
contributed to the increase in income inequality in Lithuania.

langue originale	Anglais
Pages (de - à)	S131-S166
journal	Review of Income and Wealth
Volume	68
Numéro de publication	S1
Date de mise en ligne précoce	2 nov. 2021
Les DOIs	https://doi.org/10.1111/roiw.12546
état	Publié - 2022

Une note bibliographique

Publisher Copyright:
© 2021 International Association for Research in Income and Wealth

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10.1111/roiw.12546

Autres fichiers et liens

SIMDECO: Tax-benefit systems, employment structures and cross-country differences in income inequality in Europe: a micro-simulation approach
Van Kerm, P., O’Donoghue, C., Sologon, D. & Liégeois, P.
16/12/13 → 15/12/16
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Contient cette citation

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title = "Income inequality and redistribution in Lithuania: the role of policy, labour market, income and demographics",

abstract = "We model the household disposable income distribution in Lithuania and explore the drivers of the increase in income inequality between 2007 and 2015. We quantify the contributions of four factors to changes in the disposable income distribution: (i) demographics; (ii) labour market structure; (iii) returns and prices; and (iv) tax-benefit system. Results show that the effects of the factors were substantial and reflected heterogeneous developments over twosub-periods: changes in the tax and benefit system cushioned a rapid rise in market income inequality due to the global financial crisis during 2007-2011, but failed to do so during the subsequent years of economic expansion, when rising returns in the labour and capital markets significantly increased disposable income inequality. We also find that declining marriage ratescontributed to the increase in income inequality in Lithuania.",

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author = "Nerijus {\v C}erniauskas and Denisa Sologon and Cathal O{\textquoteright}Donoghue and Linas Tarasonis",

note = "Funding Information: : This research is part of the follow‐up of theSimDeco project () supported by the National Research Fund, Luxembourg (grant C13/SC/5937475). The authors are indebted to the many people who have contributed to the development of EUROMOD, which is maintained, developed, and managed by the ISER at the University of Essex, in collaboration with national teams from the EU member states. The results and their interpretation are the authors{\textquoteright} responsibility. The views expressed in this paper are those of the authors and do not necessarily represent those of the Bank of Lithuania or the Eurosystem. Note Tax‐benefit systems, employment structures, and cross‐country differences in income inequality in Europe: a micro‐simulation approach Publisher Copyright: {\textcopyright} 2021 International Association for Research in Income and Wealth",

year = "2022",

doi = "10.1111/roiw.12546",

language = "English",

volume = "68",

pages = "S131--S166",

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AU - Černiauskas, Nerijus

AU - Sologon, Denisa

AU - O’Donoghue, Cathal

AU - Tarasonis, Linas

N1 - Funding Information: : This research is part of the follow‐up of theSimDeco project () supported by the National Research Fund, Luxembourg (grant C13/SC/5937475). The authors are indebted to the many people who have contributed to the development of EUROMOD, which is maintained, developed, and managed by the ISER at the University of Essex, in collaboration with national teams from the EU member states. The results and their interpretation are the authors’ responsibility. The views expressed in this paper are those of the authors and do not necessarily represent those of the Bank of Lithuania or the Eurosystem. Note Tax‐benefit systems, employment structures, and cross‐country differences in income inequality in Europe: a micro‐simulation approach Publisher Copyright: © 2021 International Association for Research in Income and Wealth

PY - 2022

Y1 - 2022

N2 - We model the household disposable income distribution in Lithuania and explore the drivers of the increase in income inequality between 2007 and 2015. We quantify the contributions of four factors to changes in the disposable income distribution: (i) demographics; (ii) labour market structure; (iii) returns and prices; and (iv) tax-benefit system. Results show that the effects of the factors were substantial and reflected heterogeneous developments over twosub-periods: changes in the tax and benefit system cushioned a rapid rise in market income inequality due to the global financial crisis during 2007-2011, but failed to do so during the subsequent years of economic expansion, when rising returns in the labour and capital markets significantly increased disposable income inequality. We also find that declining marriage ratescontributed to the increase in income inequality in Lithuania.

AB - We model the household disposable income distribution in Lithuania and explore the drivers of the increase in income inequality between 2007 and 2015. We quantify the contributions of four factors to changes in the disposable income distribution: (i) demographics; (ii) labour market structure; (iii) returns and prices; and (iv) tax-benefit system. Results show that the effects of the factors were substantial and reflected heterogeneous developments over twosub-periods: changes in the tax and benefit system cushioned a rapid rise in market income inequality due to the global financial crisis during 2007-2011, but failed to do so during the subsequent years of economic expansion, when rising returns in the labour and capital markets significantly increased disposable income inequality. We also find that declining marriage ratescontributed to the increase in income inequality in Lithuania.

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KW - redistribution

KW - tax-benefit policies

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Income inequality and redistribution in Lithuania: the role of policy, labour market, income and demographics

Résumé

Une note bibliographique

Accès au document

Autres fichiers et liens

Projets

SIMDECO: Tax-benefit systems, employment structures and cross-country differences in income inequality in Europe: a micro-simulation approach

Contient cette citation