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Increased Income Inequality in OECD Countries and the Redistributive Impact of the Government Budget

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Author Info

  • Atkinson, A.B.

Abstract

The recent rise in inequality in the distribution of disposable income in many, although not all, countries has led to a search for explanations, particularly since for much of the postwar period falling inequality has been the norm. In OECD countries, the cause has typically been identified as rising wage dispersion, coupled with persistent unemployment in Europe, but changes in the government budget can also be important. This paper is concerned with the role of the government budget, particularly taxes and transfers, in explaining the evolution of the distribution of disposable income.

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Bibliographic Info

Paper provided by World Institute for Development Economics Research in its series Research Paper with number 202.

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Length: 36 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:fth:wodeec:202

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Postal: United Nations University; World Institute for Development Economics Research, Katajanokanlaituri 6B, 00160 Helsinki
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Web page: http://www.wider.unu.edu/
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Keywords: INCOME ; UNEMPLOYMENT ; BUDGET;

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Cited by:
  1. Alvaro Forteza & Ianina Rossi, 2009. "The contribution of government transfer programs to inequality. A net-benefit approach," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 55-67, May.
  2. Tabi Atemnkeng Johannes & Tafah Akwi & Peter Etoh Anzah, 2006. "The Distributive Impact of Fiscal Policy in Cameroon: Tax and Benefit Incidence," Working Papers PMMA 2006-16, PEP-PMMA.
  3. Heshmati, Almas, 2004. "Continental and Sub-Continental Income Inequality," IZA Discussion Papers 1271, Institute for the Study of Labor (IZA).
  4. Erwin Tiongson & Hamid Reza Davoodi & Sawitree S. Asawanuchit, 2003. "How Useful Are Benefit Incidence Analyses of Public Education and Health Spending," IMF Working Papers 03/227, International Monetary Fund.
  5. Giovanni Andrea Cornia, 2005. "Policy Reform and Income Distribution," Working Papers 3, United Nations, Department of Economics and Social Affairs.
  6. Jorge Martinez-Vazquez, 2001. "The Impact of Budgets on the Poor: Tax and Benefit," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0110, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  7. Heshmati, Almas, 2004. "Growth, Inequality and Poverty Relationships," IZA Discussion Papers 1338, Institute for the Study of Labor (IZA).
  8. Umir Wahid & Sally Wallace, 2008. "Incidence of Taxes in Pakistan: Primer and Estimates," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0813, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  9. Jorge Martinez-Vazquez, 2007. "Budget Policy and Income Distribution," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0707, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  10. Heshmati, Almas, 2004. "The World Distribution of Income and Income Inequality," IZA Discussion Papers 1267, Institute for the Study of Labor (IZA).

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