The Determinants of Income Polarization on the Household and Country Level across the EU
AbstractA multi-level approach to test for the determinants of income polarization both at the household as well as the country level is applied to a panel of about 300,000 households in EU countries over the period of 2003-2009. Among the policy relevant macro variables, higher progressive labour taxation and to a certain extent capital taxation is positively correlated with lower levels of income polarization. Also public expenditures on social protection, education and economic subsidies are related to a lower degree of polarization. Finally, lower unemployment, a stronger industrial base and more trade openness are also associated with lower levels of polarization.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The Vienna Institute for International Economic Studies, wiiw in its series wiiw Working Papers with number 93.
Length: 18 pages including 4 Tables and 1 Figure
Date of creation: Sep 2012
Date of revision:
Publication status: Published as wiiw Working Paper
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H5 - Public Economics - - National Government Expenditures and Related Policies
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Joan Esteban & Debraj Ray, 2009.
"Linking Conflict to Inequality and Polarization,"
377, Barcelona Graduate School of Economics.
- Jean-Yves Duclos & Joan Esteban & Debraj Ray, 2004.
"Polarization: Concepts, Measurement, Estimation,"
Econometric Society, vol. 72(6), pages 1737-1772, November.
- Jean-Yves Duclos & Joan Esteban & Debraj Ray, 2003. "Polarization: Concepts, Measurement, Estimation," Working Papers 46, Barcelona Graduate School of Economics.
- Duclos, Jean-Yves & Esteban, Joan & Ray, Debraj, 2003. "Polarization: Concepts, Measurement, Estimation," Cahiers de recherche 0301, CIRPEE.
- Blanco Perez, Cristina & Ramos, Xavi, 2008.
"Polarisation and Health,"
IZA Discussion Papers
3727, Institute for the Study of Labor (IZA).
- Elhanan Helpman & Oleg Itskhoki & Marc-Andreas Muendler & Stephen Redding, 2012.
"Trade and Inequality: From Theory to Estimation,"
CEP Discussion Papers
dp1138, Centre for Economic Performance, LSE.
- Elhanan Helpman & Oleg Itskhoki & Marc-Andreas Muendler & Stephen J. Redding, 2012. "Trade and Inequality: From Theory to Estimation," NBER Working Papers 17991, National Bureau of Economic Research, Inc.
- Stephen Redding & Oleg Itskhoki & Marc-Andreas Muendler & Elhanan Helpman, 2012. "Trade and Inequality: From Theory to Estimation," 2012 Meeting Papers 135, Society for Economic Dynamics.
- Elisabetta Croci Angelini & Francesco Farina & Mario Pianta, 2009. "Innovation and wage polarisation in Europe," International Review of Applied Economics, Taylor and Francis Journals, vol. 23(3), pages 309-325.
- Van Kerm, Philippe, 2007. "Extreme incomes and the estimation of poverty and inequality indicators from EU-SILC," IRISS Working Paper Series 2007-01, IRISS at CEPS/INSTEAD.
- Richard Hauser, 2007. "Probleme des deutschen Beitrags zu EU-SILC aus der Sicht der Wissenschaft: ein Vergleich von EU-SILC, Mikrozensus und SOEP," SOEPpapers on Multidisciplinary Panel Data Research 69, DIW Berlin, The German Socio-Economic Panel (SOEP).
- 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.
- Joan-Maria Esteban & Debraj Ray, 1991.
"On the Measurement of Polarization,"
Boston University - Institute for Economic Development
18, Boston University, Institute for Economic Development.
- Esteban, J.M. & Ray, D., 1992. "On the Measurement of Polarization," UFAE and IAE Working Papers 171.92, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Esteban, J. & Ray, D., 1993. "On the Measurement of Polarization," UFAE and IAE Working Papers 221.93, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, vol. 84(2), pages 353-58, May.
- Henning Lohmann, 2008. "Welfare States, Labour Market Institutions and the Working Poor: A Comparative Analysis of 20 European Countries," Discussion Papers of DIW Berlin 776, DIW Berlin, German Institute for Economic Research.
- Xisco Oliver & Luca Piccoli & Amedeo Spadaro, 2010. "A Microsimulation Evaluation Of Efficiency, Inequality, And Polarization Effects Of Implementing The Danish, The French, And The U.K. Redistribution System In Spain," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(1), pages 186-214, 03.
- Sanghamitra Bandyopadhyay, 2006.
"Rich States, Poor States: Convergence and Polarisation in India,"
Economics Series Working Papers
266, University of Oxford, Department of Economics.
- Sanghamitra Bandyopadhyay, 2011. "Rich States, Poor States: Convergence And Polarisation In India," Scottish Journal of Political Economy, Scottish Economic Society, vol. 58(3), pages 414-436, 07.
- Roberto Ezcurra & Pedro Pascual & Manuel Rapun, 2006. "Regional mobility in the European Union," Applied Economics, Taylor and Francis Journals, vol. 38(19), pages 2237-2253.
- Shlomo Yitzhaki, 2010. "Is There Room For Polarization?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(1), pages 7-22, 03.
- H. Baltagi, Badi & Heun Song, Seuck & Cheol Jung, Byoung, 2001. "The unbalanced nested error component regression model," Journal of Econometrics, Elsevier, vol. 101(2), pages 357-381, April.
- James Foster & Michael Wolfson, 2010. "Polarization and the decline of the middle class: Canada and the U.S," Journal of Economic Inequality, Springer, vol. 8(2), pages 247-273, June.
- Esteban, Joan & Ray, Debraj, 1999. "Conflict and Distribution," Journal of Economic Theory, Elsevier, vol. 87(2), pages 379-415, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Customer service).
If references are entirely missing, you can add them using this form.