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Income Inequality and Transformation of the Welfare State: A Comparative Study of the Reforms in New Zealand and Sweden

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Author Info

  • Chatterjee, Srikanta

    () (Department of Economics and Finance Group)

  • Dalziel, Paul

    () (Economics at the Commerce Division)

  • Daunfeldt, Sven-Olov

    () (The Swedish Retail Institute (HUI))

  • Podder, Nripesh

    () ((Formerly) School of Economics)

Abstract

The purpose of this paper is to analyse income inequality trends in New Zealand and Sweden from 1983 to 1997, a period when both New Zealand and Sweden implemented economic reforms that transformed their respective welfare systems. The results do not suggest that the more extensive reform programme in New Zealand was associated with a relatively larger increase in income inequality. Moreover, the level of social welfare of New Zealanders increased slightly after the implementation of the reform programme, while no similar evidence is apparent in the Swedish income data.

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Bibliographic Info

Paper provided by HUI Research in its series HUI Working Papers with number 20.

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Length: 42 pages
Date of creation: 16 Oct 2008
Date of revision:
Handle: RePEc:hhs:huiwps:0020

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Keywords: income distribution; generalized Lorenz curves;

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  1. Edin, Per-Anders & Fredriksson, Peter, 2000. "LINDA - Longitudinal INdividual DAta for Sweden," Working Paper Series 2000:19, Uppsala University, Department of Economics.
  2. Klevmarken, N. Anders, 2001. "On the Wealth Dynamics of Swedish Families 1984-1998," Working Paper Series 2001:17, Uppsala University, Department of Economics.
  3. Daunfeldt, Sven-Olov & de Luna, Xavier, 1998. "The Efficacy and Cost of Regime Shifts in Inflation Policies: Evidence from New Zealand and Sweden," UmeÃ¥ Economic Studies 475, Umeå University, Department of Economics.
  4. Assar Lindbeck, 1997. "The Swedish Experiment," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1273-1319, September.
  5. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
  6. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
  7. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June.
  8. Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-81, September.
  9. Gary Burtless, 1995. "International Trade and the Rise in Earnings Inequality," Journal of Economic Literature, American Economic Association, vol. 33(2), pages 800-816, June.
  10. Paul Dalziel, 2002. "New Zealand's Economic Reforms: An assessment," Review of Political Economy, Taylor and Francis Journals, vol. 14(1), pages 31-46.
  11. Lewis Evans & Arthur Grimes & Bryce Wilkinson, 1996. "Economic Reform in New Zealand 1984-95: The Pursuit of Efficiency," Journal of Economic Literature, American Economic Association, vol. 34(4), pages 1856-1902, December.
  12. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Differences in Needs and Assessment of Income Distributions," Bulletin of Economic Research, Wiley Blackwell, vol. 44(2), pages 77-124, April.
  13. Srikanta Chatterjee & Nripesh Podder, 2007. "Some Ethnic Dimensions of Income Distribution from Pre- to Post-reform New Zealand, 1984-1998," The Economic Record, The Economic Society of Australia, vol. 83(262), pages 275-286, 09.
  14. Agell, Jonas & Englund, Peter & Södersten, Jan, 1996. "Tax Reform of the Century - The Swedish Experiment," Working Paper Series 1996:13, Uppsala University, Department of Economics.
  15. Richard B. Freeman, 1995. "Are Your Wages Set in Beijing?," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 15-32, Summer.
  16. Fortin, Bernard & Lacroix, Guy, 1997. "A Test of the Unitary and Collective Models of Household Labour Supply," Economic Journal, Royal Economic Society, vol. 107(443), pages 933-55, July.
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