Direct effects of the policy – a microsimulation approach to the decomposition of the changes in income inequality in Poland from 2005 to 2017 Cover Image
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Bezpośrednie efekty polityki – podejście mikrosymulacyjne do dekompozycji zmian w zróżnicowaniu dochodu do dyspozycji gospodarstw domowych w Polsce w latach 2005–2017
Direct effects of the policy – a microsimulation approach to the decomposition of the changes in income inequality in Poland from 2005 to 2017

Author(s): Leszek Morawski
Subject(s): Economy
Published by: Wydawnictwa Uniwersytetu Warszawskiego
Keywords: income ineqality; decomposition of changes of Gini coefficient; Shapley-Shorrocks method
Summary/Abstract: In this chapter, we estimate changes in income inequality in Poland from 2005 to 2017 that resulted from the changes in tax and benefit policy. We provide the theoretical background and describe the characteristics of the methods for such an estimation. Our results suggest that income inequality decreased (as measured with the Gini coefficient); however, the values of the measure varied in subperiods. We conclude that the changes in policy did not counteract the increase in income inequality during the economic slowdown, but they contributed to the decrease during the economic recovery.

  • Page Range: 82-96
  • Page Count: 15
  • Publication Year: 2020
  • Language: English, Polish