Skip to main content

The Spatial Distribution of Household Disposable Income

  • Chapter
  • First Online:
Spatial Microsimulation for Rural Policy Analysis

Part of the book series: Advances in Spatial Science ((ADVSPATIAL))

Abstract

Although not development policies per se, taxation and social policy, as amongst the biggest line items in terms of expenditure and revenue in the state budget, have a very important impact on the distribution of welfare both across families of different incomes and types and across space. Since the early 1990s in Ireland there has been a growing emphasis on spatially targeting policy options in the area of poverty and social exclusion. For example, the National Anti-Poverty Strategy (1997) has a spatial dimension in two of its five priority themes: disadvantaged urban areas and marginalised rural communities. The National Spatial Strategy (2002) presents a national programme of development actions to reduce inter-regional inequality. Within these frameworks, local Partnerships have been utilised as a mechanism to target resources at poverty “blackspots” (Haase and Foley 2009).

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    Earlier versions of the survey were carried out in the 1950’s, but only covered urban areas.

  2. 2.

    The excluded categories are those who, although capable of work, do not seek employment including those in education.

  3. 3.

    For a period from the late 1970s to mid 1990s, there existed a small earnings related component in Unemployment and Disability Benefits. Subsequently, a component has been retained so that benefits are adjusted to limit the replacement rate of those with very low previous earnings. Maternity benefits continue to be earnings related subject to maximum and minimum payments.

  4. 4.

    See Callan et al. (1996) and Callan and Nestor (2000) for a description of these means tests.

  5. 5.

    See O’Donoghue and Sutherland (1999).

  6. 6.

    Capital gains and bequests are taxed separately.

  7. 7.

    Björklund and Palme 1997 use a similar decomposition method but instead use the I0, Theil L and I1 Theil T indices.

References

  • Atkinson AB, Rainwater L, Smeeding T (1995) Income distribution in OECD countries: evidence from the Luxembourg income study. Organisation for Economic Co-operation and Development, Paris

    Google Scholar 

  • Bedi T, Coudouel A, Simler K et al (2007) More than a pretty picture: using poverty maps to design better policies and interventions. The World Bank, Washington, DC

    Google Scholar 

  • Björklund A, Palme M (1997) Income redistribution within the life cycle versus between individuals: empirical evidence using Swedish panel data. Working Paper Series in Economics and Finance No. 197, Stockholm School of Economics, Stockholm

    Google Scholar 

  • Callan T, Nestor R (2000) Housing benefits & employer PRSI in Ireland. Mimeo. The Economic and Social Research Institute, Dublin

    Google Scholar 

  • Callan T, Nolan B (1989) Evaluating social welfare expenditures: how well does the system perform in reducing poverty? Econ Social Review 20(4):329–352

    Google Scholar 

  • Callan T, Nolan B (1993) Income inequality in Ireland in the 1970’s and 1980’s. Working Paper Series No. 43, Economic and Social Research Institute, Dublin

    Google Scholar 

  • Callan T, Nolan B, O'Neill D, Sweetman O (1998) Female labour supply and income inequality in Ireland. Department of Economics Working Paper, Maynooth

    Google Scholar 

  • Callan T, O’Donoghue C, O’Neill C (1996) Simulating welfare and income tax changes: the ESRI tax-benefit model. The Economic and Social Research Institute, Dublin

    Google Scholar 

  • Callan T, Keeney M, Nolan B, Walsh JR (2001) Reforming tax and welfare policy, vol 42, ESRI policy research series. ESRI, Dublin

    Google Scholar 

  • Callan T, Coleman K, Walsh JR (2007) Work incentives, poverty and welfare in Ireland, vol 60, ESRI Policy research series. Economic and Social Research Institute, Dublin

    Google Scholar 

  • Callan T, Keane C (2009) Non-cash benefits and the distribution of economic welfare. Econ Soc Rev 40(1):49–71

    Google Scholar 

  • Central Statistics Office (2000) Household incomes: regions and counties 1991–1997. Government Publication, Dublin

    Google Scholar 

  • Central Statistics Office (2005) County incomes and regional GDP: 2004. Central Statistics Office

    Google Scholar 

  • Chin Shih-Foong, Harding Ann, Lloyd Rachel, McNamara Justine, Phillips Ben, Vu Quoc Ngu (2005) Spatial microsimulation using synthetic small-area estimates of income, tax and social security benefits. Australas J Reg Stud 11(3):303–335

    Google Scholar 

  • Elbers C, Olsen Lanjouw J, Lanjouw P (2003) Micro-level estimation of poverty and inequality. Econometrica 71(1):355–364

    Article  Google Scholar 

  • Haase T, Foley R (2009) Feasibility study for a local poverty index. Combat Poverty Agency, Dublin

    Google Scholar 

  • Hentschel J, Lanjouw JO, Lanjouw P, Poggi J (1999) Combining census and survey data to study spatial dimensions of poverty: a case study of Ecuador. World Bank Economic Review

    Google Scholar 

  • Jencks C, Mayer SE (1990) The social consequences of growing up in a poor neighborhood. In: Lynn LE Jr, McGeary MGH (eds) Inner city poverty in the United States. National Academy Press, Washington, DC

    Google Scholar 

  • Morgenroth E (2007b) The regional dimension of taxes and public expenditure in Ireland. ESRI working paper no. 195, Economic and Social Research Institute, Dublin

    Google Scholar 

  • Nolan B (1978) The personal distribution of income in the republic of Ireland. J Stat Social Inquiry Ireland XXIII:91–139

    Google Scholar 

  • Nolan B (1981) Redistribution of household income in Ireland by taxes and benefits. Econ Social Review 13(1):59–88

    Google Scholar 

  • Nolan B, Whelan CT, Willams J (1998) Where are the poor households? The spatial distribution of poverty and deprivation in Ireland. Combat Poverty Agency, Dublin

    Google Scholar 

  • Nolan B, Maître B (2000) A comparative perspective on trends in income inequality in Ireland. Econ Soc Rev 31(4):329–335

    Google Scholar 

  • Nolan B (2007) Long-Term Trends in Top Income Shares in Ireland In: Atkinson AB, Piketty T (eds) Top incomes over the 20th century. A contrast between continental European and English-speaking countries. Oxford University Press, Oxford

    Google Scholar 

  • Nolan B, Maître B (2008) Economic growth and income inequality: setting the context. In: Fahey T, Russell Helen, Whelan CT (eds) Quality of life in Ireland, vol 32, Social indicators research series. Springer, Dordrecht, pp 27–41

    Chapter  Google Scholar 

  • O’Connell P (1982) The distribution and redistribution of income in the republic of Ireland. Econ Social Review 13(4):251–278

    Google Scholar 

  • O’Donoghue C (1998) A technical description of the Irish module of Eur6, University of Cambridge Microsimulation Unit Research Note, R26

    Google Scholar 

  • O’Donoghue C, Sutherland H (1999) For richer, for poorer? The treatment of marriage and the family in European income tax systems. Camb J Econ 23(5):565–598

    Google Scholar 

  • O’Donoghue C (2002) Redistribution over the Lifetime in the Irish tax-benefit system: an application of a prototype dynamic microsimulation model for Ireland. Econ Soc Rev 32(3):191–216

    Google Scholar 

  • O’Donoghue C (2004) Redistributive forces in the Irish tax-benefit system. J Stat Soc Inquiry Soc Ir XXXII:33–69

    Google Scholar 

  • O’Donoghue C, Morrissey K, Loughrey J (forthcoming) Modelling the impact of the economic crisis on inequality in Ireland. IZA discussion paper

    Google Scholar 

  • Watson D, Whelan CT, Willams J, Blackwell S (2005) Mapping poverty: national regional and county patterns, vol 34, Combat poverty agency research series. Combat Poverty Agency, Dublin

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Cathal O’Donoghue .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2013 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

O’Donoghue, C., Morrissey, K., Hayes, P., Loughrey, J., Banks, J., Hynes, S. (2013). The Spatial Distribution of Household Disposable Income. In: O'Donoghue, C., Ballas, D., Clarke, G., Hynes, S., Morrissey, K. (eds) Spatial Microsimulation for Rural Policy Analysis. Advances in Spatial Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-30026-4_11

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-30026-4_11

  • Published:

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-30025-7

  • Online ISBN: 978-3-642-30026-4

  • eBook Packages: Business and EconomicsEconomics and Finance (R0)

Publish with us

Policies and ethics