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

Author

Listed:
  • 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.

Suggested Citation

  • Atkinson, A.B., 2000. "Increased Income Inequality in OECD Countries and the Redistributive Impact of the Government Budget," Research Paper 202, World Institute for Development Economics Research.
    • Handle: RePEc:fth:wodeec:202
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    Cited by:

    1. Almas Heshmati, 2006. "Continental And Sub-Continental Income Inequality," The IUP Journal of Applied Economics, IUP Publications, vol. 0(1), pages 7-52, January.
    2. 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.
    3. 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.
    4. Iris Claus & Jorge Martinez-Vazquez & VIoleta Vulovic, 2012. "Government Fiscal Policies and Redistribution in Asian Countries," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1213, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    5. Enrico Fabrizi & Maria Rosaria Ferrante & Silvia Pacei, 2014. "A Micro-Econometric Analysis of the Antipoverty Effect of Social Cash Transfers in Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(2), pages 323-348, June.
    6. Giovanni Andrea Cornia, 2005. "Policy Reform and Income Distribution," Working Papers 3, United Nations, Department of Economics and Social Affairs.
    7. Heshmati, Almas, 2004. "The World Distribution of Income and Income Inequality," IZA Discussion Papers 1267, Institute of Labor Economics (IZA).
    8. 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. 12, pages 55-67, May.
    9. Bruno Bises & Francesco Bloise & Antonio ScialÃ, 2021. "Functional income distribution, inequality and the effectiveness of fiscal redistribution: evidence from OECD countries," Public Finance Research Papers 49, Istituto di Economia e Finanza, DSGE, Sapienza University of Rome.
    10. Heshmati, Almas, 2004. "Growth, Inequality and Poverty Relationships," IZA Discussion Papers 1338, Institute of Labor Economics (IZA).
    11. Mr. Erwin H Tiongson & Mr. Hamid R Davoodi & Sawitree S. Asawanuchit, 2003. "How Useful Are Benefit Incidence Analyses of Public Education and Health Spending," IMF Working Papers 2003/227, International Monetary Fund.
    12. Dilip Das, 2008. "Contemporary Phase of Globalization: Does It Have a Serious Downside?," Global Economic Review, Taylor & Francis Journals, vol. 37(4), pages 507-526.
    13. Hamid R. Davoodi & Erwin R Tiongson & Sawitree Sachjapinan Asawanuchit, 2010. "Benefit Incidence of Public Education and Health Spending Worldwide: Evidence From A New Database," Poverty & Public Policy, John Wiley & Sons, vol. 2(2), pages 5-52, May.
    14. Kristin van Barneveld & Michael Quinlan & Peter Kriesler & Anne Junor & Fran Baum & Anis Chowdhury & PN (Raja) Junankar & Stephen Clibborn & Frances Flanagan & Chris F Wright & Sharon Friel & Joseph H, 2020. "The COVID-19 pandemic: Lessons on building more equal and sustainable societies," The Economic and Labour Relations Review, , vol. 31(2), pages 133-157, June.
    15. 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.
    16. Beramendi, Pablo & Cusack, Thomas R., 2004. "Diverse disparities: The politics and economics of wage, market and disposable income inequalities," Discussion Papers, Research Unit: Institutions, States, Markets SP II 2004-08, WZB Berlin Social Science Center.
    17. 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.
    18. Simon Shen & Wilson Chan, 2018. "A comparative study of the Belt and Road Initiative and the Marshall plan," Palgrave Communications, Palgrave Macmillan, vol. 4(1), pages 1-11, December.

    More about this item

    Keywords

    INCOME ; UNEMPLOYMENT ; BUDGET;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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