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Institute of Public Finance

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Income Redistribution in Croatia: The Role of Individual Taxes and Social Transfers

Ivica Urban, Institute of Public Finance, Zagreb, Croatia

The paper discusses the methodology and preliminary results of an investigation of the redistributive effects of social security contributions (SSC), personal income tax (PIT), public pensions as well as means-tested and non-means-tested cash benefits in Croatia. The transition from a pre- to a post-tax-and-benefit income is analyzed in order to reveal which instruments contribute most to the reduction of inequality. The Croatian system of individual taxes, pensions and social benefits seems to be highly redistributive, with public pensions being the instrument that contributes most, followed by SSC and PIT.

Keywords:  income inequality, redistribution, fiscal instruments

Year:  2008   |   Volume:  32   |   Issue:  3   |   Pages:  387 - 403

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 March, 2008
III / 2008
EBSCO Publishing
ISSN 1846-887X
e-ISSN 1845-9757
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