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Has the redistributive effect of social transfers and taxes changed over time across countries?
Author(s) -
Caminada Koen,
Goudswaard Kees,
Wang Chen,
Wang Jinxian
Publication year - 2019
Publication title -
international social security review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.349
H-Index - 28
eISSN - 1468-246X
pISSN - 0020-871X
DOI - 10.1111/issr.12193
Subject(s) - microdata (statistics) , redistribution (election) , economics , demographic economics , economic inequality , inequality , population , microsimulation , redistribution of income and wealth , income distribution , development economics , labour economics , economic growth , political science , demography , census , unemployment , sociology , mathematical analysis , mathematics , politics , transport engineering , law , engineering
In most Member countries of the Organisation for Economic Co‐operation Development (OECD), the income gap between rich and poor has widened over the past decades. This article analyses whether and to what extent income taxes and social transfers have contributed to this trend. Has the redistributive impact of different social programmes changed over time? We use microdata from the LIS Cross National Data Center in Luxembourg for the period 1982–2014 and study both the total population and the working‐age population. In contrast to the results of some other studies, especially by the OECD, we do not find that redistribution has declined. Tax‐benefit systems around 2013 are more effective at reducing income inequality compared to the mid‐1980s and the mid‐1990s, especially among the total population. Changes in social programmes are not a driver of greater income inequality across the countries included in this study.