# **Table** **<u>6. Main Scenario: Marginal Contributions to Reducing Inequality in 2014</u>**

|||||**Mar**|**ginal Contri**|**butions**|
|---|---|---|---|---|---|---|
||**Size**|**Concentration**<br>**Coefficient**|<br>**Kakwani**<br>**Coefficient**|Redistributive<br>effect|Poverty<br>reduction<br>effect US$5|Poverty reduction<br>effect National<br>Extreme|
|**Total from Market to Consumable Income**|||||||
|Direct transfers(excludingcontributory pensions)|1.9%|-0.6066|0.9825|0.0257|0.0480|0.0466|
|Housingbenefits|0.1%|-0.5890|0.9649|0.0016|0.0031|0.0029|
|NursingBenefit(zasiłek)|0.1%|-0.4608|0.8367|0.0013|0.0023|0.0022|
|NursingAllowance(świadczenie)|0.2%|-0.5678|0.9437|0.0026|0.0049|0.0047|
|Social assistance|0.3%|-0.7461|1.1220|0.0049|0.0085|0.0080|
|Familybenefits|0.4%|-0.6561|1.0320|0.0064|0.0171|0.0147|
|Socialpension|0.6%|-0.5532|0.9291|0.0076|0.0128|0.0124|
|Contributory pensions|23.3%|0.1709|0.2050|0.3165|0.2956|0.2949|
|Old-agepension|17.5%|0.2159|0.1600|0.2191|0.2107|0.2114|
|Other contributorybenefits|0.1%|0.2509|0.1251|0.0004|0.0006|0.0007|
|Pre-retirementpension|0.3%|-0.1488|0.5247|0.0030|0.0044|0.0040|
|Family pension|2.0%|0.1548|0.2211|0.0230|0.0257|0.0259|
|Disability pension|1.9%|-0.1269|0.5028|0.0216|0.0292|0.0302|
|Maternitybenefit|0.8%|0.2735|0.1025|0.0077|0.0113|0.0107|
|Unemployment benefit|0.4%|-0.1872|0.5631|0.0060|0.0087|0.0091|
|Structural farmerpension|0.2%|-0.0970|0.4730|0.0018|0.0023|0.0023|
|Direct taxes and contributions|30.0%|0.4205|0.0446|0.0137|-0.0424|-0.0413|
|Health insurance contributions|6.4%|0.3841|0.0082|0.0017|-0.0135|-0.0138|
|Capital taxes|0.0%|0.5675|0.1915|0.0000|0.0000|0.0000|
|Farm taxes|0.3%|-0.0587|-0.4347|-0.0019|-0.0025|-0.0023|
|Personal income tax|4.9%|0.5631|0.1872|0.0150|0.0016|-0.0003|
|Old-agepension contributions|10.4%|0.4080|0.0321|0.0001|-0.0230|-0.0213|
|Disability pension contributions|4.3%|0.4080|0.0321|-0.0012|-0.0124|-0.0113|
|Accident insurance contributions|1.0%|0.4269|0.0510|-0.0002|-0.0034|-0.0034|
|Sickness insurance contributions|1.2%|0.4402|0.0643|0.0000|-0.0034|-0.0037|
|Labor Fund|1.3%|0.4269|0.0510|-0.0002|-0.0043|-0.0041|
|Fund of Employee Benefits|0.0%|0.4402|0.0643|0.0000|0.0000|-0.0006|
|Pension contributions - farmers|0.2%|-0.2491|-0.6251|-0.0016|-0.0019|-0.0018|
|Other contrib - farmers|0.1%|-0.2800|-0.6559|-0.0008|-0.0011|-0.0009|
|Indirect taxes|8.9%|0.2602|-0.1157|-0.0140|-0.0331|-0.0355|
|Value-added tax|6.6%|0.2676|-0.1083|-0.0103|-0.0252|-0.0257|
|Excise taxes|2.3%|0.2383|-0.1376|-0.0054|-0.0108|-0.0112|
|**Total from Market to Final Income**|||||||
|Direct taxes and contributions|30.0%|0.4205|0.0446|0.0261|-0.0079|-0.0091|
|Direct transfers(excludingcontributory pensions)|1.9%|-0.6066|0.9825|0.0156|0.0163|0.0168|
|Indirect taxes|8.9%|0.2602|-0.1157|-0.0066|-0.0084|-0.0096|
|In-kind transfers|19.2%|-0.0858|0.4617|0.0746|||
|Education|11.6%|-0.1382|0.5142|0.0356|||
|Kindergarten benefits|0.8%|0.0890|0.2869|0.0016|||
|Primaryschool benefits|4.0%|-0.1891|0.5650|0.0168|||
|Gymnasium benefits|2.0%|-0.2429|0.6189|0.0088|||
|High school benefits|0.6%|-0.0854|0.4613|0.0016|||
|Vocational school benefits|0.9%|-0.3245|0.7005|0.0048|||
|Tertiaryschool benefits|2.3%|0.1564|0.2195|-0.0003|||
|Health<br>Source: own estimates based on 2014 HBS.|7.6%|-0.0056|0.3816|0.0294|||

1. Size equals the ratio of the amount collected or spent divided by total market income.

2. Redistributive effect equals the difference in the Gini before and after the intervention.

3. By definition, the sum of the marginal contributions does not fulfill the adding-up principle so it will not be equal to the redistributive/overall poverty effect unless by coincidence.

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