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Work, Family or State? From wage inequalities to standard of living inequalities and inwork poverty in a European cross-country perspective

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  • Guillaume Allegre

    (Observatoire français des conjonctures économiques)

Abstract

Our aim is to explore how wages inequalities translate into standard of living inequalities in different European countries. Wage inequalities are measured at the individual level. They can be increased or reduced by two institutions: the household and the tax-benefit system. Standards of living are therefore defined at the intersection of three institutions: the labour market, the family and the state (through social transfers). We propose a new methodology to distinguish the impact of these three institutions on standard of living inequalities. An empirical application is conducted for the employed population in different European countries with a focus on France, Spain, the United Kingdom, Germany, Sweden and Poland. Results are in line with expectations except for Germany, which does not conform to expectations for a corporatist regime.

Suggested Citation

  • Guillaume Allegre, 2012. "Work, Family or State? From wage inequalities to standard of living inequalities and inwork poverty in a European cross-country perspective," Sciences Po publications 2012-12, Sciences Po.
    • Handle: RePEc:spo:wpmain:info:hdl:2441/c6t1fl36hv9s7q89j8m8gcgk9
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    References listed on IDEAS

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    1. Olivier Bargain & Tim Callan, 2010. "Analysing the effects of tax-benefit reforms on income distribution: a decomposition approach," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(1), pages 1-21, March.
    2. Paul Gregg, 1996. "It Takes Two: Employment Polarisation in the OECD," CEP Discussion Papers dp0304, Centre for Economic Performance, LSE.
    3. Sami Bibi & Jean‐Yves Duclos, 2010. "A Comparison Of The Poverty Impact Of Transfers, Taxes And Market Income Across Five Oecd Countries," Bulletin of Economic Research, Wiley Blackwell, vol. 62(4), pages 387-406, October.
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    More about this item

    Keywords

    Inequality; Poverty; Social Transfers; Working poor;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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