Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/216758 
Year of Publication: 
2020
Series/Report no.: 
Agenda Austria Working Paper No. 19
Publisher: 
Agenda Austria, Wien
Abstract: 
The aim of this study is to analyze redistribution within the Austrian tax-benefit system. In this work we take a comprehensive view and include not only direct taxation and cash benefits, but also indirect taxes and in-kind transfers. We look at two kinds of redistribution: between the households belonging to different income groups, and between generations, taking the life-cycle perspective. Our analysis shows that indirect taxes, as known from the previous literature, have a regressive effect on the tax-benefit system. On the contrary, in-kind benefit seem to have a progressive effect. To analyse the impact of both, we extend our income concept by both, indirect taxes and in-kind benefits. If we look on the distributional impact, we find that the inequality-enhancing effect of indirect taxes is more than off-set by the inequality-reducing effect of in-kind benefits. The Gini coefficient increases form 0.24 to 0.26 due to indirect taxes, but when adding in-kind ben- efits, the Gini coefficient is reduced to 0.23. The overall effect of both, indirect taxes and in-kind benefits is progressive.
Subjects: 
tax-benefit model
EUROMOD
welfare state
Austria
in-kind benefits
JEL: 
I38
H24
D31
Document Type: 
Working Paper
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