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

  • 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)

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.

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Paper provided by HUI Research in its series HUI Working Papers with number 20.

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Length: 42 pages
Date of creation: 16 Oct 2008
Date of revision:
Handle: RePEc:hhs:huiwps:0020
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  1. Edin, P.-A. & Fredriksson, P., 2000. "LINDA - Longitudinal INdividual DAta for Sweden," Papers 2000:19, Uppsala - Working Paper Series.
  2. 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, 09.
  3. 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.
  4. Agell, J & Englund, P & Sodersten, J, 1996. "Tax reform of the Century - the Swedish Experiment," Papers 1996-13, Uppsala - Working Paper Series.
  5. T. Paul Schultz, 1990. "Testing the Neoclassical Model of Family Labor Supply and Fertility," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 599-634.
  6. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
  7. Klevmarken, N.A., 2001. "On the Wealth Dynamics of Swedish Families 1984-1998," Papers 2001:17, Uppsala - Working Paper Series.
  8. 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.
  9. Richard B. Freeman, 1995. "Are Your Wages Set in Beijing?," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 15-32, Summer.
  10. Daunfeldt, Sven-Olov & de Luna, Xavier, 1998. "The Efficacy and Cost of Regime Shifts in Inflation Policies: Evidence from New Zealand and Sweden," Umeå Economic Studies 475, Umeå University, Department of Economics.
  11. 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 933-55, July.
  12. Assar Lindbeck, 1997. "The Swedish Experiment," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1273-1319, September.
  13. 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.
  14. Paul Dalziel, 2002. "New Zealand's Economic Reforms: An assessment," Review of Political Economy, Taylor & Francis Journals, vol. 14(1), pages 31-46.
  15. 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.
  16. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
  17. Gary Burtless, 1995. "International Trade and the Rise in Earnings Inequality," Journal of Economic Literature, American Economic Association, vol. 33(2), pages 800-816, June.
  18. John McMillan, 1998. "Managing Economic Change: Lessons from New Zealand," The World Economy, Wiley Blackwell, vol. 21(6), pages 827-843, 08.
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