This paper introduces a new method of analysing how the changes in the tax-benefit-system have been reflected in income inequality. This method is a combination of microsimulation based decomposition (Bar gain and Callan, 2010) and a multivariate regression based decompo sition (Fields, 2003; Yun,...

This paper considers whether a replacement rate cut can be income equality enhancing and with what conditions. The logical answer to the question is yes, if the propensity of moving from low income state to high income state is high enough. The main contribution of this paper is to derive an...