Documents income redistribution 198 results

"Inequality has long been a defining feature of the global economy, but by 2025, it has reached levels that demand urgent attention. The benefits of globalization and economic growth have flowed disproportionately to a small minority, while much of the world's population still face difficulties in achieving stable livelihoods. These divides are not inevitable. They are the outcome of political and institutional choices. This report draws on the World Inequality Database and new research to provide a comprehensive picture of inequality across income, wealth, gender, international finance, climate responsibility, taxation, and politics. The findings are clear: inequality remains extreme and persistent; it manifests across multiple dimensions that intersect and reinforce one another; and it reshapes democracies, fragmenting coalitions and eroding political consensus. Yet the data also demonstrate that inequality can be reduced. Policies such as redistributive transfers, progressive taxation, investment in human capital, and stronger labor rights have made a difference in some contexts. Proposals such as minimum wealth taxes on multi-millionaires illustrate the scale of resources that could be mobilized to finance education, health, and climate adaptation. Reducing inequality is not only about fairness but also essential for the resilience of economies, the stability of democracies, and the viability of our planet."

This work is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/).

"This study addresses the central question in political economy how the objectives of attaining economic growth and restricting income inequality are related. Thus far few studies explicitly distinguish between effects of income inequality as such and effects of redistributing public interventions to equalize incomes on economic growth. In fact, most studies rely on data that do not make this distinction properly and in which top-coding is applied so that enrichment at the top end of the distribution is not adequately captured. This study aims to contribute using a pooled time-series cross-section design covering 29 countries, using OECD, LIS, and World Top Income data. No robust association between inequality and growth or redistribution and growth is found. Yet there are signs for a positive association between top incomes and growth, although the coefficient is small and a causal interpretation does not seem to be warranted."

"In this paper, we address two empirical puzzles: Why are cross-country differences in the division of labour between public and private education funding so large and why are they politically sustainable in the long term? We argue that electoral institutions play a crucial role in shaping politico-economic distributive coalitions that affected the original division of labour in education financing. In proportional representation systems, the lower and middle classes formed a coalition supporting the establishment of a system with a large share of public funding. In majoritarian systems, in contrast, the middle class voters aligned with the upper income class and supported private education spending instead. Once established, institutional arrangements create feedback effects on the micro-level of attitudes, reinforcing political support even among upper middle classes in public systems. These hypotheses are tested empirically both on the micro level of preferences as well as on the macro level with aggregate data and survey data from the ISSP for 20 Organization for Economic Co-operation and Development countries."

"Since the mid-1990s, there has been a debate about the social investment state model in advanced societies. Such an orientation towards preventive investment in education rather than redistribution (or social spending) raises the question of whether, and if so, what kinds of relationships exist between educational and economic inequalities. Based on an international comparison of 20 advanced economies, the results of the analyses suggest that the role of education as an ‘equalizer' should not be overestimated. Direct redistribution is much more likely than education to combat poverty in advanced societies. Yet increasing the mean literacy rate by reducing the proportion of low-literate adults is also positively associated with less economic inequality. Welfare states with ‘double liability'—investing in children's education and in more equal family conditions—therefore perform best in terms of economic inequality."

"This article analyses the determinants of market income distribution and governmental redistribution. The dependent variables are Luxembourg Income Study data on market income inequality (measured by the Gini index) for households with a head aged 25–59 years and the per cent reduction in the Gini index by taxes and transfers. We test the generalizability of the Goldin–Katz hypothesis that inequality has increased in the USA because the country failed to invest sufficiently in education. The main determinants of market income inequality are (in order of size of the effect) family structure (single mother households), union density, deindustrialization, unemployment, employment levels and education spending. The main determinants of redistribution are (in order of magnitude) left government, family structure, welfare state generosity, unemployment and employment levels. Redistribution rises mainly because needs rise (that is, unemployment and single mother households increase), not because social policy becomes more redistributive."

"According to the ‘median-voter' hypothesis, greater inequality in the market distribution of earnings or income tends to produce greater generosity in redistributive policy. We outline the steps in the causal chain specified by the hypothesis and attempt to assess these steps empirically. Prior studies focusing on cross-country variation have found little support for the median-voter model. We examine over-time trends in eight nations during the 1980s and 1990s. Here too the median-voter hypothesis appears to have little utility."