The distributional impact of austerity and the recession in Southern Europe

Authors

Manos Matsaganis, Chrysa Leventi

Publication Date

Jun 2014

Summary

Southern European welfare states are under stress. On the one hand, the recession has been causing unemployment to rise and incomes to fall. On the other hand, austerity has affected the capacity of welfare states to protect those affected. This paper assesses the distributional implications of the crisis in Greece, Spain, Italy and Portugal from 2009 to 2013. Using a microsimulation model, we disentangle the first-order effects of tax–benefit policies from the broader effects of the crisis, and estimate how its burden has been shared across income groups. We conclude by discussing the methodological pitfalls and policy implications of our research.

Volume and page numbers

Volume: 19 , p.393 -412

DOI

http://dx.doi.org/10.1080/13608746.2014.947700

Publication type

Journal Article

Research area

Tax and benefit systems

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