IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

Less Income Inequality and More Growth – Are They Compatible? Part 3. Income Redistribution via Taxes and Transfers Across OECD Countries

  • Isabelle Joumard
  • Mauro Pisu
  • Debra Bloch

Taxes and transfers reduce inequality in disposable income relative to market income. The effect varies, however, across OECD countries. The redistributive impact of taxes and transfers depends on the size, mix and the progressivity of each component. Some countries with a relatively small tax and welfare system (e.g. Australia) achieve the same redistributive impact as countries characterised by much higher taxes and transfers (e.g. Germany) because they rely more on income taxes, which are more progressive than other taxes, and on means-tested cash transfers. This paper provides an assessment of the redistributive effect of the main taxes and cash transfers based on a set of policy indicators and a literature review. It also identifies empirically four groups of countries with tax and transfer systems that share broadly similar features. The paper then assesses potential trade-offs and complementarities between economic growth and income redistribution objectives associated with various tax and transfer reform options. Moins d'inégalités de revenu et plus de croissance – Ces deux objectifs sont-ils compatibles ? : Partie 3. Redistribution du revenu par le biais de l'impôt et des transferts dans les pays de l'OCDE Les impôts et les transferts amènent les inégalités de revenu disponible à un niveau inférieur à celles du revenu marchand. Cet effet redistributif des impôts et transferts n’a pas la même ampleur dans tous les pays de l’OCDE. Il dépend de la taille, de la composition des impôts et transferts ainsi que de la progressivité de chaque composante. Certains pays ayant un système fiscal et de protection sociale relativement peu importants (comme l’Australie, par exemple) obtiennent le même effet redistributif que des pays où les impôts et les transferts sont beaucoup plus élevés (comme l’Allemagne) du fait qu’ils recourent davantage aux impôts sur le revenu, plus progressifs que les autres impôts, et à des transferts en espèces ciblés sur les ménages les plus démunis. Ce document donne une évaluation de l’effet redistributif des principaux impôts et transferts à partir d’une série d’indicateurs de l’action publique et d’une revue des études existantes. Il identifie aussi, de manière empirique, quatre groupes de pays dont les systèmes fiscaux et de protection sociale présentent des caractéristiques à peu près similaires. Le document évalue ensuite les arbitrages et complémentarités potentiels entre les objectifs de croissance économique et de redistribution du revenu relatifs aux diverses possibilités de réforme des systèmes fiscaux et de protection sociale.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Our checks indicate that this address may not be valid because: 403 Forbidden ( [303 See Other]--> If this is indeed the case, please notify ()

Download Restriction: no

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 926.

in new window

Date of creation: 10 Jan 2012
Date of revision:
Handle: RePEc:oec:ecoaaa:926-en
Contact details of provider: Postal: 2 rue Andre Pascal, 75775 Paris Cedex 16
Phone: 33-(0)-1-45 24 82 00
Fax: 33-(0)-1-45 24 85 00
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:926-en. 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: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.