Redistribution Policy and Inequality in Portugal (2008‑2017)

Abstract

The aim of this paper is to analyse in detail the redistributive effects of pensions, other social benefits, and taxes in Portugal during the 2008‑17 period, which includes the economic crisis of 2010‑13 and the recovery starting in 2014. It examines the successive income distributions and their transitions from Market to Disposable income. Pensions are analysed individually because of their growing importance, but they also make the highest contribution to the decrease in income inequality. The rise in the dimension, efficacy, and progressivity of taxes explains the relative stability of the Gini coefficient during the crisis. After 2014, Disposable income inequality decreased significantly, helped by the economic recovery, falling unemployment, and improving income policies.