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

Author

Listed:
  • 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.

Suggested Citation

  • Chatterjee, Srikanta & Dalziel, Paul & Daunfeldt, Sven-Olov & Podder, Nripesh, 2008. "Income Inequality and Transformation of the Welfare State: A Comparative Study of the Reforms in New Zealand and Sweden," HUI Working Papers 20, HUI Research.
    • Handle: RePEc:hhs:huiwps:0020
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    References listed on IDEAS

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    Cited by:

    1. Nolan, Matt, 2018. "Horizontal and Vertical Equity in the New Zealand Tax-Transfer System: 1988-2013," Working Paper Series 7657, Victoria University of Wellington, Chair in Public Finance.

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    More about this item

    Keywords

    income distribution; generalized Lorenz curves;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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