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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Paper provided by World Institute for Development Economics Research in its series Research Paper with number
202.
Length: 36 pages Date of creation: 2000 Date of revision: Handle: RePEc:fth:wodeec:202
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Find related papers by JEL classification: J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search J7 - Labor and Demographic Economics - - Labor Discrimination
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