On the meaning and measurement of redistribution in cross-country comparisons

Arbeitspapier

Empirical findings on the relationship between income inequality and redistribution from a cross-country perspective are not conclusive. One reason may be that observers have in mind different concepts of redistribution. A major factor is that comparator countries' pre-fisc distributions typically differ markedly, and account is taken of this differently (if at all) by different measures of redistribution. The ambiguities can be resolved by applying the "transplant-and-compare" approach, rendering fiscal regimes into a common base by adjusting for differences in pre-fisc income inequality, and then measuring the "pure" effect of tax-and-transfer policies using this benchmark. We illustrate both what is possible, and what remains problematic, using this technique, by conducting an exploratory international comparison, based on microdata from the Luxembourg Income Study database in combination with more aggregated information from the OECD, for 15 countries.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Papers ; No. 649

Classification and Topics

• Classification: Wirtschaft ; Structure, Scope, and Performance of Government ; Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies ; National Government Expenditures and Welfare Programs
• Subject: Redistributive effect ; Personal income tax ; Cross-country comparison

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lambert, Peter J. ; Nesbakken, Runa ; Thoresen, Thor O.
• Event: Veröffentlichung
• (who): Statistics Norway, Research Department
• (where): Oslo
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/192631
• Last update: 10.03.2025, 11:43 AM CET