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Comparing Government Redistribution Across Countries: The Problem of Second-Order Effects

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  • David K. Jesuit
  • Vincent A. Mahler

Abstract

We offer an alternative to the conventional measure of government redistribution that seeks to address problems of second-order effects whereby income guarantees arising from public pensions make it less necessary for people to save for their retirement, rendering the "pregovernment" counterfactual to the observed postgovernment distribution unrealistic. Copyright (c) 2010 by the Southwestern Social Science Association.

Suggested Citation

  • David K. Jesuit & Vincent A. Mahler, 2010. "Comparing Government Redistribution Across Countries: The Problem of Second-Order Effects," Social Science Quarterly, Southwestern Social Science Association, vol. 91(s1), pages 1390-1404.
  • Handle: RePEc:bla:socsci:v:91:y:2010:i:s1:p:1390-1404
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    References listed on IDEAS

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    1. Robert Plotnick, 1984. "The Redistributive Impact of Cash Transfers," Public Finance Review, , vol. 12(1), pages 27-50, January.
    2. Julia Lynch, 2001. "The Age-Orientation of Social Policy Regimes in OECD Countries," LIS Working papers 308, LIS Cross-National Data Center in Luxembourg.
    3. Lane Kenworthy & Jonas Pontusson, 2005. "Rising Inequality and the Politics of Redistribution in Affluent Countries," LIS Working papers 400, LIS Cross-National Data Center in Luxembourg.
    4. Paglin, Morton, 1975. "The Measurement and Trend of Inequality: A Basic Revision," American Economic Review, American Economic Association, vol. 65(4), pages 598-609, September.
    5. Milanovic, Branko, 2000. "The median-voter hypothesis, income inequality, and income redistribution: an empirical test with the required data," European Journal of Political Economy, Elsevier, vol. 16(3), pages 367-410, September.
    6. Pablo Beramendi, 2001. "The Politics of Income Inequality in the OECD: The Role of Second Order Effects," LIS Working papers 284, LIS Cross-National Data Center in Luxembourg.
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    Cited by:

    1. Schaffrin, André & Reibling, Nadine, 2015. "Household energy and climate mitigation policies: Investigating energy practices in the housing sector," Energy Policy, Elsevier, vol. 77(C), pages 1-10.
    2. Malte Luebker, 2014. "Income Inequality, Redistribution, and Poverty: Contrasting Rational Choice and Behavioral Perspectives," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(1), pages 133-154, March.
    3. repec:ilo:ilowps:471001 is not listed on IDEAS
    4. Ali T. Cem Başlevent, 2014. "Social Transfers and Income Inequality in Turkey: How Informative Is the Survey of Income and Living Conditions?," Ekonomi-tek - International Economics Journal, Turkish Economic Association, vol. 3(3), pages 23-42, September.
    5. Cem Baslevent, 2016. "Social Transfers and Income Inequality in Turkey: How Important is the Gender Dimension?," Working Papers 1013, Economic Research Forum, revised Jun 2016.

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