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Earnings Inequality, Unemployment and Income Distribution in the OECD

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  • Jes s Ruiz-Huerta
  • Luis Ayala
  • Rosa Martinez

Abstract

This paper will try to elucidate to what degree disposable income distribution in some OECD countries has been affected by the labor market changes described using data from the Luxembourg Income Study (LIS). Three questions require a detailed analysis. Firstly, how has income distribution evolved in the countries under study? The first section describes the inequality trends derived from the best micro-data available on disposable income to carry out international comparisons from the LIS database. Secondly, what effects have the changes in earnings inequality had on the above trends? The links between earnings inequality as well as primary income inequality (which includes income from work and capital) and disposable income distribution must be examined to answer this question. And lastly, what has been the distributive impact of unemployment with regard to greater inequality and/or higher poverty levels? Aspects such as social security coverage rates and how unemployment affects households are relevant factors for understanding the effects of such a phenomenon in the various countries considered.

Suggested Citation

  • Jes s Ruiz-Huerta & Luis Ayala & Rosa Martinez, 1999. "Earnings Inequality, Unemployment and Income Distribution in the OECD," LIS Working papers 214, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:214
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    References listed on IDEAS

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    Cited by:

    1. Kjetil Bjorvatn & Alexander W. Cappelen, 2003. "Redistributive Tax Policies and Inequality: An Assessment of Recent Country Comparative Studies," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 1(1), pages 28-31, 02.
    2. Bjorvatn, Kjetil & Cappelen, Alexander W., 2004. "Globalisation, inequality and redistribution," University of Göttingen Working Papers in Economics 33, University of Goettingen, Department of Economics.
    3. repec:got:cegedp:33 is not listed on IDEAS

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