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Time, Money and Inequality in International Perspective

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  • Lars Osberg

Abstract

Across OECD countries there are large differences in the average level and trend of working hours and there is persuasive evidence that attitudes to paid employment, particularly for women, differ significantly. This paper therefore asks the question: ""How much of the difference between countries in inequality of the distribution of money income can be explained by differing probabilities of paid employment?"" Luxembourg Income Study data on the USA, UK, Canada, Germany, France and Sweden is used to simulate the income distributions that other countries would have if they had the US (or German) female, and total, employment rate. In every case, measured trans-Atlantic differences in the inequality of money income increase - hence observed differences understate the extent of differences in well being. Put simply, in the US the less affluent have to work harder, and still end up relatively poorer, than in other countries.

Suggested Citation

  • Lars Osberg, 2002. "Time, Money and Inequality in International Perspective," LIS Working papers 334, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:334
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    References listed on IDEAS

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    1. Osberg, Lars & Phipps, Shelley, 1993. "Labour Supply with Quantity Constraints: Estimates from a Large Sample of Canadian Workers," Oxford Economic Papers, Oxford University Press, vol. 45(2), pages 269-291, April.
    2. Bell, Linda A. & Freeman, Richard B., 2001. "The incentive for working hard: explaining hours worked differences in the US and Germany," Labour Economics, Elsevier, vol. 8(2), pages 181-202, May.
    3. Lars Osberg & Kuan Xu, 2000. "International Comparisons of Poverty Intensity: Index Decomposition and Bootstrap Inference," Journal of Human Resources, University of Wisconsin Press, vol. 35(1), pages 51-81.
    4. Linda Bell & Richard Freeman, 1994. "Why Do Americans and Germans Work Different Hours?," NBER Working Papers 4808, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Joachim Merz & Tim Rathjen, 2011. "Intensity of Time and Income Interdependent Multidimensional Poverty: Well-Being and Minimum 2DGAP ; German Evidence," SOEPpapers on Multidisciplinary Panel Data Research 411, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Joachim Merz & Tim Rathjen, 2014. "Time And Income Poverty: An Interdependent Multidimensional Poverty Approach With German Time Use Diary Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(3), pages 450-479, September.
    3. Timothy Smeeding, 2002. "Globalization, Inequality and the Rich Countries of the G-20: Evidence from the Luxembourg Income Study," LIS Working papers 320, LIS Cross-National Data Center in Luxembourg.
    4. Merz, Joachim & Böhm, Paul & Burgert, Derik, 2005. "Timing, Fragmentation of Work and Income Inequality - An Earnings Treatment Effects Approach," MPRA Paper 5972, University Library of Munich, Germany.
    5. Timothy M. Smeeding, 2002. "Globalization, Inequality, and the Rich Countries of the G-20: Evidence from the Luxembourg Income Study (LIS)," Center for Policy Research Working Papers 48, Center for Policy Research, Maxwell School, Syracuse University.
    6. Eamon, Mary Keegan & Wu, Chi-Fang & Zhang, Saijun, 2009. "Effectiveness and limitations of the Earned Income Tax Credit for reducing child poverty in the United States," Children and Youth Services Review, Elsevier, vol. 31(8), pages 919-926, August.
    7. Joachim Merz & Henning Stolze, 2010. "Kumulation von Querschnitten - Evaluierung alternativer Konzepte für die kumulierten laufenden Wirtschaftsrechnungen 1999 bis 2003 im Vergleich zur Einkommens- und Verbrauchsstichprobe 2003," FFB-Discussionpaper 85, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.

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