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Low Income Inequality, High Wealth Inequality.The Puzzle of the Rhineland Welfare States

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  • Bas van Bavel
  • Ewout Frankema

Abstract

Inequality studies tend to assume a positive correlation between income and wealth inequality. We doubt whether this holds for Rhineland welfare states as they seem to combine low income inequality with high wealth inequality levels. We hypothesize that publicly funded life-time income security, which is so typical for Rhineland welfare states, enhances private debt creation, while the redistributive taxes required to finance this system are targeting income rather than wealth.

Suggested Citation

  • Bas van Bavel & Ewout Frankema, 2013. "Low Income Inequality, High Wealth Inequality.The Puzzle of the Rhineland Welfare States," Working Papers 0050, Utrecht University, Centre for Global Economic History.
    • Handle: RePEc:ucg:wpaper:0050
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    Cited by:

    1. Paul Beer & Wiemer Salverda, 2014. "2014-16: Piketty in the Netherlands - The first reception," Labour markets and industrial relations in the Netherlands - Working Papers 2014-16, AIAS, Amsterdam Institute for Advanced Labour Studies.
    2. van Bavel, Bas, 2016. "The Invisible Hand?: How Market Economies have Emerged and Declined Since AD 500," OUP Catalogue, Oxford University Press, number 9780199608133, Decembrie.

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