caa a22 4500 467889333 CHVBK 20180406152744.0 cr unu---uuuuu 170328e20060401xx s 000 0 eng 10.1007/s10888-005-9006-4 doi (NATIONALLICENCE)springer-10.1007/s10888-005-9006-4 Income distribution in discrete hours behavioural microsimulation models: An illustration [Elektronische Daten] [John Creedy, Guyonne Kalb, Rosanna Scutella] In tax microsimulation models which predict labour supply using a probabilistic discrete hours approach, the analysis of the distribution of income is difficult because, even for a small sample with a modest range of labour supply points, the range of possible combinations over the sample is extremely large. This paper demonstrates the use of a pseudo income distribution, where the probability of a particular labour supply value occurring (standardised by the population size) is used to refer to a particular position in the pseudo income distribution. The superior performance of the pseudo approach compared to using the expected income or taking few draws from the possible set of distributions is illustrated by a simulation example for sole parents in Australia, in which the whole social security system is abolished. The example shows further that even if sole parents could move freely into the labour force, they do not manage to compensate fully or even close to fully for their loss of income when no benefit payments are available. Springer Science+Business Media, Inc., 2005 Creedy John Department of Economics, The University of Melbourne, 3052, Parkville, Victoria, Australia aut Kalb Guyonne Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, 3052, Parkville, Victoria, Australia aut Scutella Rosanna Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, 3052, Parkville, Victoria, Australia aut The Journal of Economic Inequality Springer US; http://www.springer-ny.com 4/1(2006-04-01), 57-76 1569-1721 4:1<57 2006 4 10888 https://doi.org/10.1007/s10888-005-9006-4 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s10888-005-9006-4 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Creedy John Department of Economics, The University of Melbourne, 3052, Parkville, Victoria, Australia aut NATIONALLICENCE 700 1- Kalb Guyonne Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, 3052, Parkville, Victoria, Australia aut NATIONALLICENCE 700 1- Scutella Rosanna Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, 3052, Parkville, Victoria, Australia aut NATIONALLICENCE 773 0- The Journal of Economic Inequality Springer US; http://www.springer-ny.com 4/1(2006-04-01), 57-76 1569-1721 4:1<57 2006 4 10888 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer