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Income Inequality and Transformation of the Welfare State: A Comparative Study of the Reforms in New Zealand and Sweden

Author

Listed:
  • Chatterjee, Srikanta

    () (Department of Economics and Finance Group)

  • Dalziel, Paul

    () (Economics at the Commerce Division)

  • Daunfeldt, Sven-Olov

    () (The Swedish Retail Institute (HUI))

  • Podder, Nripesh

    () ((Formerly) School of Economics)

Abstract

The purpose of this paper is to analyse income inequality trends in New Zealand and Sweden from 1983 to 1997, a period when both New Zealand and Sweden implemented economic reforms that transformed their respective welfare systems. The results do not suggest that the more extensive reform programme in New Zealand was associated with a relatively larger increase in income inequality. Moreover, the level of social welfare of New Zealanders increased slightly after the implementation of the reform programme, while no similar evidence is apparent in the Swedish income data.

Suggested Citation

  • Chatterjee, Srikanta & Dalziel, Paul & Daunfeldt, Sven-Olov & Podder, Nripesh, 2008. "Income Inequality and Transformation of the Welfare State: A Comparative Study of the Reforms in New Zealand and Sweden," HUI Working Papers 20, HUI Research.
  • Handle: RePEc:hhs:huiwps:0020
    as

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    References listed on IDEAS

    as
    1. Sven-Olov Daunfeldt & Xavier De Luna, 2001. "The efficacy and cost of regime shifts in inflation policies-Evidence from New Zealand and Sweden," Applied Economics, Taylor & Francis Journals, vol. 33(2), pages 217-224.
    2. Paul Dalziel, 2002. "New Zealand's Economic Reforms: An assessment," Review of Political Economy, Taylor & Francis Journals, vol. 14(1), pages 31-46.
    3. Lewis Evans & Arthur Grimes & Bryce Wilkinson, 1996. "Economic Reform in New Zealand 1984-95: The Pursuit of Efficiency," Journal of Economic Literature, American Economic Association, vol. 34(4), pages 1856-1902, December.
    4. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Differences in Needs and Assessment of Income Distributions," Bulletin of Economic Research, Wiley Blackwell, vol. 44(2), pages 77-124, April.
    5. John McMillan, 1998. "Managing Economic Change: Lessons from New Zealand," The World Economy, Wiley Blackwell, vol. 21(6), pages 827-843, August.
    6. Fortin, Bernard & Lacroix, Guy, 1997. "A Test of the Unitary and Collective Models of Household Labour Supply," Economic Journal, Royal Economic Society, vol. 107(443), pages 933-955, July.
    7. Klevmarken, N.A., 2001. "On the Wealth Dynamics of Swedish Families 1984-1998," Papers 2001:17, Uppsala - Working Paper Series.
    8. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June.
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    10. Srikanta Chatterjee & Nripesh Podder, 2007. "Some Ethnic Dimensions of Income Distribution from Pre- to Post-reform New Zealand, 1984-1998," The Economic Record, The Economic Society of Australia, vol. 83(262), pages 275-286, September.
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    13. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
    14. 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 1333-1381, September.
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    More about this item

    Keywords

    income distribution; generalized Lorenz curves;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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