| Popis: |
This paper introduces a new method of analysing how the changes in tax-benefitt-system have been reflected in income inequality. This method is a combination of microsimulation based decomposition (Bargain and Callan, 2010) and a multivariate regression based decomposition (Fields, 2003; Yun, 2006). It allows analysing how the policy changes have affected the importance of different individual characteristics in income inequality. With the variance of log of incomes, the decomposition can be made further to separate the changes directly related to policy decisions from the overall price- and residual effects. This method is applied to analyse the evolution of income inequality in Finland from 1993 to 2014. |
