Work, family or state ? from wage inequalitie ans in-work poverty in a european cross-country perspective
AbstractOur aim is to explore how wages inequalities translate into standard of living inequalities in different European countries. Wage inequalities are measured at the individual level. They can be increased or reduced by two institutions: the household and the tax-benefit system. Standards of living are therefore defined at the intersection of three institutions: the labour market, the family and the state (through social transfers). We propose a new methodology to distinguish the impact of these three institutions on standard of living inequalities. An empirical application is conducted for the employed population in different European countries with a focus on France, Spain, the United Kingdom, Germany, Sweden and Poland. Results are in line with expectations except for Germany, which does not conform to expectations for a corporatist regime.
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Bibliographic InfoPaper provided by Observatoire Francais des Conjonctures Economiques (OFCE) in its series Documents de Travail de l'OFCE with number 2012-12.
Date of creation: Apr 2012
Date of revision:
Inequality; Poverty; Social transfers; Working poor;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-23 (All new papers)
- NEP-EUR-2012-04-23 (Microeconomic European Issues)
- NEP-LAB-2012-04-23 (Labour Economics)
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