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The inequality trap. A comparative analysis of social spending between 1880 and 1930

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  • Sergio Espuelas

Abstract

type="main"> It is often assumed that the fight against inequality played an important role in the rise of the welfare state. However, using social transfers as an indicator of redistribution and three alternative proxies for inequality—the top income shares, the ratio of the GDP per capita to the unskilled wage, and the share of non-family farms—this article shows that inequality did not favour the development of social policy between 1880 and 1930. On the contrary, social policy developed more easily in countries that were previously more egalitarian, suggesting that unequal societies were in a sort of inequality trap, where inequality itself was an obstacle to redistribution.

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  • Sergio Espuelas, 2015. "The inequality trap. A comparative analysis of social spending between 1880 and 1930," Economic History Review, Economic History Society, vol. 68(2), pages 683-706, May.
    • Handle: RePEc:bla:ehsrev:v:68:y:2015:i:2:p:683-706
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    File URL: http://hdl.handle.net/10.1111/1468-0289.12062
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    2. Maurizio Bussolo & Ada Ferrer‐i‐Carbonell & Anna Giolbas & Iván Torre, 2021. "I Perceive Therefore I Demand: The Formation of Inequality Perceptions and Demand for Redistribution," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(4), pages 835-871, December.

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