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Changing Income Inequality in OECD Countries: Updated Results from the Luxembourg Income Study (LIS)

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  • Andrzej Grodner
  • Timothy Smeeding

Abstract

The purpose of this study is to update the results first presented in 1995 in the OECD Monograph, ""Income Distribution in OECD Countries: Evidence from the Luxembourg Income Study"" by Atkinson, Rainwater, and Smeeding (1995). Though only five years have passed since the publication of this volume, we are now able to compare the level of disposable income inequality across 20 nations, including Germany, in three separate periods using LIS. Moreover, we are now able to use several sets of national data to assess the changes in inequality that have taken place in recent years. The brief results are that the ranking of nations by the level of inequality at a point in time are more or less the same regardless of the year of comparison from roughly 1980-1997. But large changes in the distribution of income have taken place within many nations, with most finding a higher level of inequality in the mid-to-late 1990s than in the 1980s, and with Western Germany being no exception. Inequality, however, has not risen in Denmark or in Canada over this period, while its rise has slowed in several nations. This suggests that rising economic inequality is not inevitable. Strategies for improving these estimates are also discussed.

Suggested Citation

  • Andrzej Grodner & Timothy Smeeding, 2000. "Changing Income Inequality in OECD Countries: Updated Results from the Luxembourg Income Study (LIS)," LIS Working papers 252, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:252
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    References listed on IDEAS

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    1. Lars Osberg, 2000. "Long Run Trends in Economic Inequality in Five Countries - A Birth Cohort View," LIS Working papers 222, LIS Cross-National Data Center in Luxembourg.
    2. Timothy Smeeding, 1997. "American Income Inequality in a Cross-National Perspective: Why Are We So Different?," LIS Working papers 157, LIS Cross-National Data Center in Luxembourg.
    3. Timothy Smeeding & Gunther Schmaus & Brigitte Buhmann & Lee Rainwater, 1988. "Equivalence Scales, Well-Being, Inequality and Poverty: Sensitivity Estimates Across Ten Countries Using the LIS Database," LIS Working papers 17, LIS Cross-National Data Center in Luxembourg.
    4. Smeeding, Timothy M, et al, 1993. "Poverty, Inequality, and Family Living Standards Impacts across Seven Nations: The Effect of Noncash Subsidies for Health, Education and Housing," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(3), pages 229-256, September.
    5. Peter Gottschalk, 1997. "Inequality, Income Growth, and Mobility: The Basic Facts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 21-40, Spring.
    6. 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.
    7. Timothy M. Smeeding & Peter Saunders & John Coder & Stephen Jenkins & Johan Fritzell & Aldi J. M. Hagenaars & Richard Hauser & Michael Wolfson, 1993. "Poverty, Tnequaltty, And Famtly Living Standards Impacts Across Seven Nations: The Effect Of Noncash Subsidies For Health, Education And Housing," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(3), pages 229-256, September.
    8. Mats Johansson & Bjorn Gustafsson, 1997. "In Search for a Smoking Gun: What Makes Income Inequality Vary Over Time in Different Countries?," LIS Working papers 172, LIS Cross-National Data Center in Luxembourg.
    9. Richard B. Freeman, 2000. "Single Peaked Vs. Diversified Capitalism: The Relation Between Economic Institutions and Outcomes," NBER Working Papers 7556, National Bureau of Economic Research, Inc.
    10. Brigitte Buhmann & Lee Rainwater & Guenther Schmaus & Timothy M. Smeeding, 1988. "Equivalence Scales, Well‐Being, Inequality, And Poverty: Sensitivity Estimates Across Ten Countries Using The Luxembourg Income Study (Lis) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-142, June.
    11. A.B. Atkinson, 1999. "Income inequality in the UK," Health Economics, John Wiley & Sons, Ltd., vol. 8(4), pages 283-288, June.
    12. Buhmann, Brigitte, et al, 1988. "Equivalence Scales, Well-Being, Inequality, and Poverty: Sensitivity Estimates across Ten Countries Using the Luxembourg Income Study (LIS) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-142, June.
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