A re-examination of welfare states and inequality in rich nations: How in-kind transfers and indirect taxes change the story
Previous studies find large crossnational differences in inequality amongst rich Western nations, due in large part to differences in the generosity of welfare state transfers. The United States is the least generous nation and the one having the most aftertax and transfer inequality. But these analyses are limited to the effects of cash and nearcash transfers and direct taxes on incomes, while on average, half of welfare state transfers in rich nations are inkind benefits-health insurance, education, and other services. Counting inkind benefits at government cost and accounting for the indirect taxes used to finance transfers substantially reduces crossnational differences in inequality at the bottom of the income distribution. The findings have implications for how we think about tradeoffs across welfare state domains that all nations face and we illustrate this with reference to the current U.S. debate about health insurance. © 2006 by the Association for Public Policy Analysis and Management
Volume (Year): 25 (2006)
Issue (Month): 4 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/journal/34787/home|
References listed on IDEAS
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.:
- 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.
- Willem Adema & Maxime Ladaique, 2005. "Net Social Expenditure, 2005 Edition: More Comprehensive Measures of Social Support," OECD Social, Employment and Migration Working Papers 29, OECD Publishing.
- Le Grand, Julian, 1978. "The Distribution of Public Expenditure: The Case of Health Care," Economica, London School of Economics and Political Science, vol. 45(178), pages 125-142, May.
- Lindert,Peter H., 2009.
Cambridge University Press, number 9780521529174, December.
- Lindert,Peter H., 2004. "Growing Public," Cambridge Books, Cambridge University Press, number 9780521821742, December.
- Lindert,Peter H., 2004. "Growing Public," Cambridge Books, Cambridge University Press, number 9780521821759, December.
- Lindert,Peter H., 2004. "Growing Public," Cambridge Books, Cambridge University Press, number 9780521529167, December.
- David Card & A. Abigail Payne, 1998.
"School Finance Reform, the Distribution of School Spending, and the Distribution of SAT Scores,"
NBER Working Papers
6766, National Bureau of Economic Research, Inc.
- David Card & Abigail A. Payne, 1997. "School Finance Reform, the Distribution of School Spending, and the Distribution of SAT Scores," Working Papers 766, Princeton University, Department of Economics, Industrial Relations Section..
- Kathryn Wilson, 2000. "Using the Psid to Study the Effects of School Spending," Public Finance Review, , vol. 28(5), pages 428-451, September.
- William Duncombe & John Yinger, 1997. "Why is it so hard to help central city schools?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 16(1), pages 85-113.
When requesting a correction, please mention this item's handle: RePEc:wly:jpamgt:v:25:y:2006:i:4:p:897-919. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.