An analysis of the distributional consequences of such programmes suggests that they can work well during the early phase of a downturn (Bargain et al., Net replacement rates (NRR) are a useful way of quantifying the net effects of a range of policy changes. By expressing net incomes of unemployed people relative to those in work, this indicator of relative income maintenance accounts for changes in both in-work and out-of-work incomes, for instance a drop in NRRs points to incomes of the unemployed falling behind relative to those in work. It is therefore well-suited for an assessment of how policy changes may have impacted on income inequality as commonly measured.