Robin Hood versus Piggy Bank: Income Redistribution in Portugal 2006-2010

  • Carlos Farinha Rodrigues University of Lisbon, School of Economics and Management; Centre for Applied Mathematics and Economics, Lisbon, Portugal
  • Isabel Andrade Centre for Applied Mathematics and Economics, Lisbon, Portugal

Abstract

The redistributive effect of the Portuguese welfare state through pensions, benefits and income taxes is investigated in detail over the 2006-2010 period using disposable income as benchmark. All social and fiscal policy instruments analysed contribute significantly to the reduction in inequality and poverty, with benefits other than pensions being the most cost-efficient. However, the impact of the economic crisis and austerity policies implemented from 2010 has reversed the previous trends and affected negatively the efficacy and efficiency of all instruments.


Key words: Income inequality, Redistribution, Tax and expenditure policy, Portugal.
JEL: C81, D31, H22, H55.

How to Cite
Farinha Rodrigues C., & Andrade I. (2014). Robin Hood versus Piggy Bank: Income Redistribution in Portugal 2006-2010. Panoeconomicus, 61(5), 617-630. doi:10.2298/PAN1405617R
Section
Original scientific paper