Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/223450 
Year of Publication: 
2020
Series/Report no.: 
CESifo Working Paper No. 8378
Publisher: 
Center for Economic Studies and Ifo Institute (CESifo), Munich
Abstract: 
We provide a critique of the standard methodology which bases welfare comparisons between households on deflating household income and consumption by an equivalence scale. We argue that this leads to support for tax/transfer policies that significantly disadvantage low to middle in-come households and women as second earners. We base the critique both on a theoretical model of the family household and a detailed analysis of Australian income and employment data.
Subjects: 
inequality
equivalence scales
tax/transfer policy
families
JEL: 
D13
D31
H21
H24
H31
Document Type: 
Working Paper
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