The optimal size and structure of government benefit programmes crucially depend on households’ income risk and their ability to self-insure against it. This column demonstrates that in the UK, earning dynamics, such as income risk and shock persistence, differ substantially depending on age and position in the income distribution. Taking these dynamics into account when evaluating benefit policies is of crucial importance, as it dramatically changes the estimated welfare improvements. When the dynamics are incorporated, the 2016 reform of the UK’s benefit system is found to have been welfare-improving on average.
Mariacristina De Nardi, Giulio Fella, Gonzalo Paz-Pardo, 07 February 2021
Most Read
-
Ha, Kose, Ohnsorge
-
Cagé, Hervé, Mazoyer
-
van den Heuvel, Popp
-
Ambrocio, Ferrero, Jokivuolle, Ristolainen
-
Diemer, Iammarino, Rodríguez-Pose, Storper
-
Burgess, Sievertsen
-
Eichengreen, O'Rourke
-
Mitze, Kosfeld, Rode, Wälde
-
Heldring, Robinson
-
Allen
Blogs&Reviews
-
Carraro, Cœuré, Dhand, Eichengreen, Mills, Rey, Sapir, Schwarzer
-
Evenett
-
Fullerton, Levinson
-
Hoffmann, Moench, Pavlova, Schultefrankenfeld
-
Reichlin, Adam, McKibbin, McMahon, Reis, Ricco, Weder di Mauro
Vox eBooks

Fink, Ménière, Toole, Veugelers, 13 July 2022
Don't Miss
Kalemli-Ozcan
Sunde, Rohner, Berlanda
Events
-
22 - 23 August 2022 / Palais Coburg, Vienna, Austria / WU Vienna University of Economics and Business Research Institute for Capital Markets (ISK)
-
23 - 25 August 2022 / Online /
-
29 - 31 August 2022 / Barcelona Spain / Central Bank Research Association (CEBRA)
-
7 - 8 September 2022 / Roma Eventi, Congress Center, Pontificia Università Gregoriana Rome, Italy / European Center of Sustainable Development , CIT University
-
11 - 14 September 2022 / Basel University / Verein fue Socialpolitik/Basel University
CEPR Policy Research
-
Gobillon, Solignac
-
Giglio, Maggiori, Stroebel, Weber
-
Summers, Fatás
-
Favero, Galasso
-
Butt, Churm, McMahon, Morotz, Schanz
-
Eichengreen, Avgouleas, Poiares Maduro, Panizza, Portes, Weder di Mauro, Wyplosz, Zettelmeyer
-
Baldwin, Beck, Bénassy-Quéré, Blanchard, Corsetti, De Grauwe, den Haan, Giavazzi, Gros, Kalemli-Ozcan, Micossi, Papaioannou, Pesenti, Pissarides , Tabellini, Weder di Mauro
-
Baldwin, Nakatomi
-
Thimann
-
Goodhart, Perotti