This paper examines a reform of the French welfare system. More precisely, it is a question of granting a decreasing benefit according to earned income. The modulation of this benefit according to the family size and the rent is clarified in detail. Several alternatives of the reform are analyzed and quantified by means of microsimulations on the French sample of the European Panel. The redistributive impact, including financing, is then studied using a new two-dimensional dominance criterion (dimensions income and family size) introducing an interval of acceptable equivalence scales. This criterion allows to conclude to the redistributive interest of the reform whereas the usual criteria, which are based on unbounded equivalence scales, lead to a vague diagnostic. Classification JEL : D31, D63, H20.
All Science Journal Classification (ASJC) codes
- Economics, Econometrics and Finance(all)