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Figure 1 | IZA Journal of Labor Policy

Figure 1

From: Labour supply and income distribution effects of the working income tax benefit: a general equilibrium microsimulation analysis

Figure 1

Density curves of adult-equivalent net income. Notes: FGTo denotes the share of households with income below the low-income measure which equal to fifty percent of median income. In this figure, “Balanced” means the reconciled or adjusted distribution using difference minimisation criteria, and “Simply distributed” means the distribution of total income in the SAM by using the share of each household in total income in the raw data. It is obvious that the latter alternative is the least preferable since it overestimates and changes the structure of income sources by household because this procedure is implemented for all income components which have to be consistent with national accounts.

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