The impact of redistributive policies on inequality in OECD countries

Arbeitspapier

Due to behavioral effects triggered by redistributional interventions, it is still an open question whether government policies are able to effectively reduce income inequality. We contribute to this research question by using different country-level data sources to study inequality trends in OECD countries since 1980. We first investigate the development of inequality over time before analyzing the question of whether governments can effectively reduce inequality. Different identification strategies, using fixed effects and instrumental variables models, provide some evidence that governments are capable of reducing income inequality despite countervailing behavioral responses. The effect is stronger for social expenditure policies than for progressive taxation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 14-012

Classification and Topics

• Classification: Wirtschaft ; Personal Income, Wealth, and Their Distributions ; Welfare Economics: General ; Taxation, Subsidies, and Revenue: General
• Subject: Inequality ; Redistribution ; Social Expenditure ; Progressive Taxation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Doerrenberg, Philipp ; Peichl, Andreas
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/91723
• URN: urn:nbn:de:bsz:180-madoc-359323
• Last update: 10.03.2025, 11:44 AM CET