Has the redistributive effect of social transfers and taxes changed over time across countries?
Caminada, Koen ; Goudswaard, Kees P. ; Wang, Chen ; Wang, Jinxian
International Social Security Review
2019
72
1
January - March
3-31
income redistribution ; social inequality ; welfare state ; taxation
Income distribution
https://doi.org/10.1111/issr.12193
English
Bibliogr.
"In most Member countries of the Organisation for Economic Co‐operation Development (OECD), the income gap between rich and poor has widened over the past decades. This article analyses whether and to what extent income taxes and social transfers have contributed to this trend. Has the redistributive impact of different social programmes changed over time? We use microdata from the LIS Cross National Data Center in Luxembourg for the period 1982–2014 and study both the total population and the working‐age population. In contrast to the results of some other studies, especially by the OECD, we do not find that redistribution has declined. Tax‐benefit systems around 2013 are more effective at reducing income inequality compared to the mid‐1980s and the mid‐1990s, especially among the total population. Changes in social programmes are not a driver of greater income inequality across the countries included in this study."
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