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When government’s economic ideology shapes income redistribution. Empirical evidence from the OECD

Author

Listed:
  • Juan A. Román-Aso

    (Universidad San Jorge)

  • Héctor Bellido

    (Universidad de Zaragoza)

  • Lorena Olmos

    (Universidad de Zaragoza)

Abstract

This paper studies the relationship between Government´s economic ideology and income redistribution, using a panel of OECD countries spanning the years 2004–2020. Our results point to the existence of a partisan effect, showing that taxes and transfer policies implemented by parties on the left reduce income inequality more than those of parties on the right. Other political and electoral factors (the proximity of the elections, the number of years for which the chief executive has been in office, and the presence of coalitional and minority governments) do not seem to be as relevant. We also analyze the role that the Great Recession and the globalization process have played in the relationship between Government´s economic ideology and income redistribution, finding that they have significantly altered it.

Suggested Citation

  • Juan A. Román-Aso & Héctor Bellido & Lorena Olmos, 2025. "When government’s economic ideology shapes income redistribution. Empirical evidence from the OECD," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 23(1), pages 177-204, March.
    • Handle: RePEc:spr:joecin:v:23:y:2025:i:1:d:10.1007_s10888-024-09634-9
    DOI: 10.1007/s10888-024-09634-9
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    More about this item

    Keywords

    Income redistribution; Inequality; Taxes and transfers; Austerity; Political factors;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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