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Earnings Inequality, Unemployment and Income Distribution in the OECD

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  • Jesús Ruiz-Huerta
  • Luis Ayala
  • Rosa Martinez

Abstract

This paper will try to elucidate to what degree disposable income distribution in some OECD countries has been affected by the labor market changes described using data from the Luxembourg Income Study (LIS). Three questions require a detailed analysis. Firstly, how has income distribution evolved in the countries under study? The first section describes the inequality trends derived from the best micro-data available on disposable income to carry out international comparisons from the LIS database. Secondly, what effects have the changes in earnings inequality had on the above trends? The links between earnings inequality as well as primary income inequality (which includes income from work and capital) and disposable income distribution must be examined to answer this question. And lastly, what has been the distributive impact of unemployment with regard to greater inequality and/or higher poverty levels? Aspects such as social security coverage rates and how unemployment affects households are relevant factors for understanding the effects of such a phenomenon in the various countries considered.

Suggested Citation

  • Jesús Ruiz-Huerta & Luis Ayala & Rosa Martinez, 1999. "Earnings Inequality, Unemployment and Income Distribution in the OECD," LIS Working papers 214, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:214
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    References listed on IDEAS

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    1. Gottschalk, Peter, 1993. "Changes in Inequality of Family Income in Seven Industrialized Countries," American Economic Review, American Economic Association, vol. 83(2), pages 136-142, May.
    2. Timothy Smeeding & Gunther Schmaus & Brigitte Buhmann & Lee Rainwater, 1988. "Equivalence Scales, Well-Being, Inequality and Poverty: Sensitivity Estimates Across Ten Countries Using the LIS Database," LIS Working papers 17, LIS Cross-National Data Center in Luxembourg.
    3. Blinder, Alan S & Esaki, Howard Y, 1978. "Macroeconomic Activity and Income Distribution in the Postwar United States," The Review of Economics and Statistics, MIT Press, vol. 60(4), pages 604-609, November.
    4. Johan Fritzell, 1992. "Income Inequality Trends in the 1980 s: A Five Country Comparison," LIS Working papers 73, LIS Cross-National Data Center in Luxembourg.
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    6. David Card & Richard B. Freeman, 1993. "Small Differences That Matter: Labor Markets and Income Maintenance in Canada and the United States," NBER Books, National Bureau of Economic Research, Inc, number card93-1, March.
    7. Brigitte Buhmann & Lee Rainwater & Guenther Schmaus & Timothy M. Smeeding, 1988. "Equivalence Scales, Well‐Being, Inequality, And Poverty: Sensitivity Estimates Across Ten Countries Using The Luxembourg Income Study (Lis) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-142, June.
    8. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, vol. 102(414), pages 1067-1082, September.
    9. repec:bla:revinw:v:34:y:1988:i:2:p:115-42 is not listed on IDEAS
    10. Card, David & Freeman, Richard B. (ed.), 1993. "Small Differences That Matter," National Bureau of Economic Research Books, University of Chicago Press, number 9780226092836, Febrero.
    11. McKinley L. Blackburn & David E. Bloom, 1993. "The Distribution of Family Income: Measuring and Explaining Changes in the 1980s for Canada and the United States," NBER Chapters, in: Small Differences That Matter: Labor Markets and Income Maintenance in Canada and the United States, pages 233-266, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Kjetil Bjorvatn & Alexander W. Cappelen, 2003. "Redistributive Tax Policies and Inequality: An Assessment of Recent Country Comparative Studies," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 1(1), pages 28-31, 02.
    2. Bjorvatn, Kjetil & Cappelen, Alexander W., 2004. "Globalisation, inequality and redistribution," University of Göttingen Working Papers in Economics 33, University of Goettingen, Department of Economics.
    3. repec:got:cegedp:33 is not listed on IDEAS

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