Arbeitspapier
Insurance, redistribution, and the inequality of lifetime income
Individuals vary considerably in how much they earn during their lifetimes. We study how the tax-and-transfer system o sets inequalities in lifetime earnings, which would otherwise translate into differences in living standards. Based on a life-cycle model, we find that redistribution by taxes and transfers off sets 54% of the inequality in lifetime earnings that is due to heterogeneous skill endowments. Meanwhile, taxes and transfers insure 45% of lifetime earnings risk. Taxes would provide more insurance if based on lifetime instead of annual earnings. Requiring wealthy individuals to repay social assistance received when younger would strengthen the insurance and redistributive functions of social assistance.
- Language
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Englisch
- Bibliographic citation
-
Series: Discussion Paper ; No. 188
- Classification
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Wirtschaft
Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Education and Inequality
Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
Time Allocation and Labor Supply
Wage Level and Structure; Wage Differentials
- Subject
-
Lifetime earnings
lifetime income
tax-and-transfer system
taxation
unemployment insurance
disability benefits
social assistance
inequality
redistribution
insurance
endowments
risk
dynamic life-cycle models
- Event
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Geistige Schöpfung
- (who)
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Haan, Peter
Kemptner, Daniel
Prowse, Victoria
- Event
-
Veröffentlichung
- (who)
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Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition
- (where)
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München und Berlin
- (when)
-
2019
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Haan, Peter
- Kemptner, Daniel
- Prowse, Victoria
- Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition
Time of origin
- 2019
Other Objects (12)
Insurance, Redistribution, and the Inequality of Lifetime Income
Insurance, redistribution, and the inequality of lifetime income
Insurance, redistribution, and the inequality of lifetime income
European unemployment insurance: Economic stability without major redistribution of household incomes
Peter Haan, B. zu Owen, wegen Diebstahls von zwei silbernen Löffeln und einem Brotmesser zu Kirchheim gef., jedoch auf Fürbitte freigel., nachdem er sich anstatt des Rechts für eine Verschreibung entschieden hatte, gelobt, zur Strafe für sein Vergehen 15 fl an dem Herzog zu zahlen, sich künftig wohl zu verhalten, und schwört U. Er stellt ferner 3 Bürgen, die sich verpflichten, ihn im Fall der Übertretung dieser U. binnen 14 Tagen festzunehmen und der Obrigkeit zu überantworten oder, wenn dies nicht geschähe, 100 fl zu bezahlen. Bürgen: Veit Knoll, Lentz Henlin, Gall Bintz, alle von Owen, seine Brüder und Vettern.
Lifetime income inequality with taxation and public benefits
Midijob reform: Increased redistribution in pension insurance - noticeable costs, relief not well targeted
Inequality and Defined Benefit Pensions when Life Expectancy is Heterogeneous
State Dependence and Female Labor Supply in Germany: The Extensive and the Intensive Margin
On the incidence of renewable energy subsidies into land prices - Evidence from Germany
Intertemporal Labor Supply Effects of Tax Reforms
Discrete Choice Labor Supply : Conditional Logit vs. Random Coefficient Models
Insurance, Redistribution, and the Inequality of Lifetime Income
Insurance, redistribution, and the inequality of lifetime income
Insurance, redistribution, and the inequality of lifetime income
European unemployment insurance: Economic stability without major redistribution of household incomes
Peter Haan, B. zu Owen, wegen Diebstahls von zwei silbernen Löffeln und einem Brotmesser zu Kirchheim gef., jedoch auf Fürbitte freigel., nachdem er sich anstatt des Rechts für eine Verschreibung entschieden hatte, gelobt, zur Strafe für sein Vergehen 15 fl an dem Herzog zu zahlen, sich künftig wohl zu verhalten, und schwört U. Er stellt ferner 3 Bürgen, die sich verpflichten, ihn im Fall der Übertretung dieser U. binnen 14 Tagen festzunehmen und der Obrigkeit zu überantworten oder, wenn dies nicht geschähe, 100 fl zu bezahlen. Bürgen: Veit Knoll, Lentz Henlin, Gall Bintz, alle von Owen, seine Brüder und Vettern.
Lifetime income inequality with taxation and public benefits
Midijob reform: Increased redistribution in pension insurance - noticeable costs, relief not well targeted
Inequality and Defined Benefit Pensions when Life Expectancy is Heterogeneous
State Dependence and Female Labor Supply in Germany: The Extensive and the Intensive Margin
On the incidence of renewable energy subsidies into land prices - Evidence from Germany
Intertemporal Labor Supply Effects of Tax Reforms
Discrete Choice Labor Supply : Conditional Logit vs. Random Coefficient Models
Insurance, Redistribution, and the Inequality of Lifetime Income
Insurance, redistribution, and the inequality of lifetime income
Insurance, redistribution, and the inequality of lifetime income
European unemployment insurance: Economic stability without major redistribution of household incomes
Peter Haan, B. zu Owen, wegen Diebstahls von zwei silbernen Löffeln und einem Brotmesser zu Kirchheim gef., jedoch auf Fürbitte freigel., nachdem er sich anstatt des Rechts für eine Verschreibung entschieden hatte, gelobt, zur Strafe für sein Vergehen 15 fl an dem Herzog zu zahlen, sich künftig wohl zu verhalten, und schwört U. Er stellt ferner 3 Bürgen, die sich verpflichten, ihn im Fall der Übertretung dieser U. binnen 14 Tagen festzunehmen und der Obrigkeit zu überantworten oder, wenn dies nicht geschähe, 100 fl zu bezahlen. Bürgen: Veit Knoll, Lentz Henlin, Gall Bintz, alle von Owen, seine Brüder und Vettern.
Lifetime income inequality with taxation and public benefits
Midijob reform: Increased redistribution in pension insurance - noticeable costs, relief not well targeted
Inequality and Defined Benefit Pensions when Life Expectancy is Heterogeneous
State Dependence and Female Labor Supply in Germany: The Extensive and the Intensive Margin
On the incidence of renewable energy subsidies into land prices - Evidence from Germany
Intertemporal Labor Supply Effects of Tax Reforms