TY  - RPRT
        AU  - Herault, Nicolas
AU  - Jenkins, Stephen P.
        TI  - Redistributive Effect and the Progressivity of Taxes and Benefits: Evidence for the UK, 1977-2018
        PY  - 2021/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14819
        UR  - https://www.iza.org/publications/dp14819
        AB  - We apply the Kakwani approach to decomposing redistributive effect into average rate, progressivity, and reranking components using yearly UK data covering 1977-2018. We examine cash and in-kind benefits, and direct and indirect taxes. In addition, we highlight an empirical implementation issue - the definition of the reference ('pre-fisc') distribution. Drawing on an innovative counterfactual approach, our empirical analysis shows that trends in the redistributive effect of cash benefits are largely associated with cyclical changes in average benefit rates. In contrast, trends in the redistributive effects of direct and indirect taxes are mostly associated with changes in progressivity. For in-kind benefits, changes in the average benefit rate and progressivity each played the major roles at different times.
        KW  - reranking
KW  - Kakwani decomposition
KW  - inequality
KW  - redistributive effect
KW  - progressivity
KW  - benefits
KW  - taxes
        ER  -