Rethinking the Pfähler–Lambert decomposition to analyse real-world personal income taxes

Onrubia, Jorge; Sánchez, Fidel Picos; Rodado, María del Carmen

doi:10.1007/s10797-014-9316-1

Cited by 10 publications

(21 citation statements)

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“…The redistributive effect of a particular component of the income taxation is measured as an impact when the previous component has been applied; namely, as the difference in Gini or concentration indices between before the component is applied and after. Studies in this literature have analysed redistributive effects for developed countries, such as Iceland (Kristjánsson, ) and Spain (Onrubia et al ., ), 15 EU countries (Verbist and Figari, ) and 15 OECD countries (Wagstaff and Doorslaer, ). Some recent studies apply such a methodology to dual income tax.…”

Section: Related Literaturementioning

confidence: 99%

Income Tax Reforms and Redistribution by Age Group: Evidence From Japan

2018

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In the 1980s, tax policy changes mitigated the redistributive effect of income tax. The present study attempts to explore how different the redistributive effect of the income tax reforms in Japan is among age groups, using Japanese household microdata for the period 1984–2009. The following results are obtained. First, the overall redistributive effect was greatest for the elderly group, followed by the middle‐aged group, and then the young group. Furthermore, this trend increased steadily over time. Second, the difference in total redistributive effects between the young and elderly increased owing to a large reduction in the base effect for the young.

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Section: Related Literaturementioning

confidence: 99%

Income Tax Reforms and Redistribution by Age Group: Evidence From Japan

2018

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“…Many analyses have tried to determine how each part of income taxation affects the redistributive effect, particularly the redistributive effect of tax rates and deductions, using the decomposition approach of redistributive effects pioneered by Pfähler (1990) andLambert (2001). In this literature, researchers have examined the roles of the tax rate structure and the tax base structure, including allowances, deductions, and tax credits, in determining the overall redistributive effects for Western countries, such as Iceland (Kristjánsson, 2013), and Spain (Onrubia et al, 2014), 15 EU countries (Verbist, 2004), and 15 OECD countries (Wagstaff and Doorslaer, 2001). …”

Section: Related Literaturementioning

confidence: 99%

Section: Decomposition Of Redistributive Effectmentioning

confidence: 99%

“…Our decomposition measure is similar to the approach presented by Onrubia et al (2014) and Kristjánsson (2013). Onrubia et al (2014) generalized the decomposition methodology by Pfähler (1990) and Lambert (2001) in order to conform to the existence of several deductions, allowances, and tax credits, as well as considering the re-ranking correction of tax treatments. Kristjánsson (2013), whose approach is most closely related to our estimation, decomposes a redistributive effect into the effects of labor income tax and capital income tax, applying the "natural decomposition rule" of Shorrocks (1982Shorrocks ( , 1983, to quantify the redistributive effects of a dual income tax system.…”

Section: Decomposition Of Redistributive Effectmentioning

confidence: 99%

“…In addition, tax credits were implemented for labor income tax over the years 1994-2006, except for 1997. Because labor income and capital income were taxed substantially separately and tax credits were implemented, we adopt a modified version of the decomposition methodology developed by Onrubia et al (2014) and Kristjánsson (2013).…”

Section: Decomposition Of Redistributive Effectmentioning

confidence: 99%

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Tax Reforms, Redistribution and Population Aging: Evidence from Japan

2016

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In the 1980s, income tax rates decreased and income tax deduction thresholds changed through income tax reforms in the OECD countries. Likewise, in Japan in the 1980s and 1990s, income tax rates decreased and the income tax deduction threshold increased. Recently, it has been pointed out that inequality and redistribution vary over different age groups. This study attempts to explore how different the redistributive effects of the income tax reforms in Japan are among various age groups, using Japanese household microdata for the period 1984-2009. The following results are obtained. First, the overall redistributive effect was greatest for the elderly group, followed by the middle-age group, and then the young group for the period 1984-2009. Furthermore, this trend increased steadily over time. Second, the difference in the total redistributive effect between the young and elderly increased owing to a large reduction in the base effect for the young. Third, the redistributive effect of income tax 1 Corresponding Author. Tel.: +81-(0)92-642-4272; fax: +81-(0)92-642-4272; e-mail: tmiyazak@econ.kyushuu.ac.jp. 2for the older elderly group is smaller than that for the younger elderly group. The consequences from Japan's experience could provide insightful suggestions for redistribution policies in other countries, most of which will face an aging society in the future.

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Analysing the Redistributive Effects of the Italian PIT with Tax Files

2019

Yearning for Inclusive Growth and Development, Good Jobs and Sustainability

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Rethinking the Pfähler–Lambert decomposition to analyse real-world personal income taxes

Cited by 10 publications

References 10 publications

Income Tax Reforms and Redistribution by Age Group: Evidence From Japan

Income Tax Reforms and Redistribution by Age Group: Evidence From Japan

Tax Reforms, Redistribution and Population Aging: Evidence from Japan

Analysing the Redistributive Effects of the Italian PIT with Tax Files

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