How do fiscal and labor policies in France affect inequality /

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Bibliographic Details
Author / Creator:Espinoza, Raphael A., (IMF staff)
Imprint:[Washington, D.C.] : International Monetary Fund, 2016.
©2016
Description:1 online resource (44 pages) : illustrations.
Language:English
Series:IMF Working Paper, 1018-5941 ; WP/16/41
IMF working paper ; WP/16/41.
Subject:
Format: E-Resource Book
URL for this record:http://pi.lib.uchicago.edu/1001/cat/bib/12505794
Hidden Bibliographic Details
Other authors / contributors:Pérez, Esther (Pérez-Ruiz), (IMFstaff)
International Monetary Fund. European Department, issuing body.
ISBN:1475599803
9781475599800
1513515969
9781513515960
9781513515960
ISSN:1018-5941
Notes:"February 2016."
"European Department."
Includes bibliographical references (pages 42-44).
Online resource; title from pdf title page (IMF.org Web site, viewed March 7, 2016).
Summary:This paper explores the impact of fiscal and labor market policies on efficiency, inequality, and fiscal outcomes in France. We extend the general equilibrium model calibrated for France by Alla and others (2015), with measures of labor and capital income for different groups in the economy (the unemployed, unskilled workers, skilled workers, public servants). For each of these groups we combine data on the income distribution with the outcomes of policy simulations to assess the impact of a suite of stylized policies on output, the fiscal balance, the Gini coefficient, and the shape of the Lorenz curve. We find that most types of fiscal expansions, while adding to the deficit and debt in the near term, generally reduce inequality, the main exception being capital income tax cuts. A reduction of the minimum wage has an ambiguous impact on the income distribution: the Gini coefficient increases, but the lowest income quintile improves its relative position in the income distribution thanks to positive employment effects. The paper also finds scope for "win-win" policy packages that could improve overall efficiency, inequality, and fiscal outcomes, for instance if targeted labor tax reductions are offset by cuts in the public wage bill. --Abstract.
Other form:Print Version: Espinoza, Raphael A. How Do Fiscal and Labor Policies in France Affect Inequality?. Washington, D.C. : International Monetary Fund, 2016 9781513515960
Standard no.:10.5089/9781513515960.001

MARC

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520 |a This paper explores the impact of fiscal and labor market policies on efficiency, inequality, and fiscal outcomes in France. We extend the general equilibrium model calibrated for France by Alla and others (2015), with measures of labor and capital income for different groups in the economy (the unemployed, unskilled workers, skilled workers, public servants). For each of these groups we combine data on the income distribution with the outcomes of policy simulations to assess the impact of a suite of stylized policies on output, the fiscal balance, the Gini coefficient, and the shape of the Lorenz curve. We find that most types of fiscal expansions, while adding to the deficit and debt in the near term, generally reduce inequality, the main exception being capital income tax cuts. A reduction of the minimum wage has an ambiguous impact on the income distribution: the Gini coefficient increases, but the lowest income quintile improves its relative position in the income distribution thanks to positive employment effects. The paper also finds scope for "win-win" policy packages that could improve overall efficiency, inequality, and fiscal outcomes, for instance if targeted labor tax reductions are offset by cuts in the public wage bill. --Abstract. 
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