Our estimates of the extent and composition of the ‘fiscal consolidation packages’ analysed here are shown in Table 2. As noted above, the aggregate measure of fiscal consolidation is derived from micro-data and, hence, can provide a useful complement to typical approaches in the fiscal adjustments macro literature.

Table 2
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Aggregate effect of simulated consolidation measures in place in 2012 as a percentage of total household disposable income, by type of policy

CountryPublic sector salariesPublic pensionsMeans- tested benefitsNon means- tested benefitsIncome taxesWorkers SICTotal effect on disposable incomeEffect of VAT changes on disposable income
EE0.00−1.640.15−0.21−0.32−1.96−3.98−1.22
EL−2.52−1.92−0.02−0.17−6.57−0.53−11.73−3.33
ES−1.27−0.920.03−0.11−2.130.00−4.41−2.55
IT−0.20−0.360.000.00−0.92−0.15−1.63−0.49
LV−2.28−1.050.04−2.65−1.26−2.03−9.23−2.96
LT−0.400.000.42−2.63−0.04−0.28−2.93−2.12
PT−2.16−2.69−1.33−0.32−0.33−0.05−6.88−1.33
RO−1.15−4.720.15−0.550.560.00−5.71−3.30
CountryPublic sector salariesPublic pensionsMeans- tested benefitsNon means- tested benefitsIncome taxesWorkers SICTotal effect on disposable incomeEffect of VAT changes on disposable income
EE0.00−1.640.15−0.21−0.32−1.96−3.98−1.22
EL−2.52−1.92−0.02−0.17−6.57−0.53−11.73−3.33
ES−1.27−0.920.03−0.11−2.130.00−4.41−2.55
IT−0.20−0.360.000.00−0.92−0.15−1.63−0.49
LV−2.28−1.050.04−2.65−1.26−2.03−9.23−2.96
LT−0.400.000.42−2.63−0.04−0.28−2.93−2.12
PT−2.16−2.69−1.33−0.32−0.33−0.05−6.88−1.33
RO−1.15−4.720.15−0.550.560.00−5.71−3.30

Notes: The measures included here are those that have a direct effect on household disposable income (changes to direct taxes, cash benefits and public sector pay) and increases in the VAT rate(s) (see Table A2 in the online Appendix). Source: own calculations with EUROMOD. A negative sign indicates a reduction in household income.

Table 2
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Aggregate effect of simulated consolidation measures in place in 2012 as a percentage of total household disposable income, by type of policy

CountryPublic sector salariesPublic pensionsMeans- tested benefitsNon means- tested benefitsIncome taxesWorkers SICTotal effect on disposable incomeEffect of VAT changes on disposable income
EE0.00−1.640.15−0.21−0.32−1.96−3.98−1.22
EL−2.52−1.92−0.02−0.17−6.57−0.53−11.73−3.33
ES−1.27−0.920.03−0.11−2.130.00−4.41−2.55
IT−0.20−0.360.000.00−0.92−0.15−1.63−0.49
LV−2.28−1.050.04−2.65−1.26−2.03−9.23−2.96
LT−0.400.000.42−2.63−0.04−0.28−2.93−2.12
PT−2.16−2.69−1.33−0.32−0.33−0.05−6.88−1.33
RO−1.15−4.720.15−0.550.560.00−5.71−3.30
CountryPublic sector salariesPublic pensionsMeans- tested benefitsNon means- tested benefitsIncome taxesWorkers SICTotal effect on disposable incomeEffect of VAT changes on disposable income
EE0.00−1.640.15−0.21−0.32−1.96−3.98−1.22
EL−2.52−1.92−0.02−0.17−6.57−0.53−11.73−3.33
ES−1.27−0.920.03−0.11−2.130.00−4.41−2.55
IT−0.20−0.360.000.00−0.92−0.15−1.63−0.49
LV−2.28−1.050.04−2.65−1.26−2.03−9.23−2.96
LT−0.400.000.42−2.63−0.04−0.28−2.93−2.12
PT−2.16−2.69−1.33−0.32−0.33−0.05−6.88−1.33
RO−1.15−4.720.15−0.550.560.00−5.71−3.30

Notes: The measures included here are those that have a direct effect on household disposable income (changes to direct taxes, cash benefits and public sector pay) and increases in the VAT rate(s) (see Table A2 in the online Appendix). Source: own calculations with EUROMOD. A negative sign indicates a reduction in household income.

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