Economics

Budget Incidence Fiscal Redistribution Dataset on Relative Income Poverty Rates

Leiden LIS Budget Incidence Fiscal Redistribution Dataset on Relative Income Poverty Rates (2019), assembled by Koen Caminada and Jinxian Wang (Version 1, February 2019), presents the disentanglement of relative income poverty measurers and the anti-poverty effects of social transfers and income taxes in 49 LIS countries for the period 1967-2016. We offer a user-friendly version allowing users to easily select relative income poverty variables and poverty alleviation variables for (a group of) countries and/or specific data years via pivot tables. Moreover, we offer a consistent time-series; all calculations were done using the new LIS Template (centered on 2007). The revised template increased both comparability over-time and cross-national.

The data source for our database is the microdata accessed between August 2017 and Decenber 2018, through the secured remote-execution system from the Luxembourg Income Study (LIS) Database. You can also access our database via the website of the LIS: Cross-National Data Center in Luxembourg.
Here, we provide:

• Documentation Guide LLBIFR Dataset on Relative Income Poverty Rates; pdf
• Dataset
  • Tables & Figures; pdf
  • Excel Sheets & Pivot Tables; xls
• Powerpoint presentation; pdf

Content

LLBIFR Dataset on Relative Income Poverty Rates (2019) offers measures of relative income poverty rates and poverty reduction via T/B-systems in the developed countries, drawing upon data from 339 Luxembourg Income Study surveys conducted in 49 countries between 1967 and 2016 (6,588,391) disposable income observations). In this dataset we have computed several kinds of results, namely income poverty before social transfers and taxes, income poverty after social transfers and taxes, the overall poverty alleviation, the partial effect of redistribution by several social transfers and the partial effect of redistribution by income taxes and social security contributions (see for a specification below). Specifically, we have computed:

1. LIS descriptives: Median and mean equivalized income, gross versus net information of income and the number of observation for each wave (= 339 datasets; 47 countries over time; 6,588,391 disposable income observations ).
   [Table A1 in Excel Spreadsheet, a pivot table allows users to select countries and/or specific data years]
2. A measure of the extent of people lifted out of poverty by fiscal redistribution, as reflected in the difference between the poverty rate of pre-tax-transfer primary income and post-tax-transfer disposable income. We offer measures of both absolute poverty reduction and relative poverty reduction ((Poverty pri - Poverty dhi)/ Poverty pri). All figures are presented for several poverty thresholds (PL40, PL50 and PL60). Moreover, figures for the average normalized poverty gap (FGT(1)) are presented, applied to a threshold of 60 percent of median income.
   [Table A2 in Excel Spreadsheet; a pivot table allows users to select countries and/or specific data years]
3. Poverty rates (pre-tax-transfer primary income and post-tax-transfer disposable income) are presented for age-groups: Total population, Working-age population, Children and the Elderly.
   [Table A3 in Excel Spreadsheet, plus a pivot table]
    
4. Poverty rates of disposable income are presented for males and females as well.
   [Table A4 in Excel Spreadsheet; a pivot table allows users to select countries and/or specific data years]
5. The average size of social transfers as a proportion of households’ pre-tax income (gross income), and a summary index of the degree to which transfers are targeted toward low-income groups. Our measure ranges from -1.0 (the poorest recipient receives all transfer income) to +1.0 (the richest recipient receives all transfer income).
   [Table A5 in Excel Spreadsheet; a pivot table allows users to select countries and/or specific data years]
   
   In order to disentangle relative income poverty even further by income source two additional statistics are provided for:
6. The budget size that is associated with several social transfers as a proportion of households’ gross income: Old-age/disability/survivor transfers; Sickness transfers; Family/children transfers; Education transfers; Unemployment transfers; Housing transfers; General/food/medical assistance transfers; Other transfers; and Income taxes and social security contributions.
   [Table A6 in Excel Spreadsheet; a pivot table allows users to select countries and/or specific data years]
7. A measure of the extent of people lifted out of poverty by via several social transfers and income taxes and social security contributions: Old-age/disability/survivor transfers; Sickness transfers; Family/children transfers; Education transfers; Unemployment transfers; Housing transfers; General/food/medical assistance transfers; Other transfers; and Income taxes and social security contributions.
   [Table A7 in Excel Spreadsheet, a pivot table allows users to select countries and/or specific data years]

A detailed description of these data and method will come available in Koen Caminada, Jinxian Wang, Kees Goudswaard & Chen Wang (2019), Relative income poverty rates and poverty alleviation via tax/benefit systems in 49 LIS-countries (1967-2016), LIS Working Paper Series #761. Please cite this working paper when referring to the data set.

The LLBIFR Dataset on Relative Income Poverty Rates (2019) is related to another dataset, the LLBIFR Dataset on Income Inequality, also assembled by Jinxian Wang and Koen Caminada Version 1, November 2017).

Questions / contact

• Koen Caminada
• Jinxian Wang

Financial support from Instituut Gak and Leiden University is acknowledged.