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The Determinants of Redistribution Around The World

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  • Markus Jäntti
  • Jukka Pirttilä
  • Risto Rönkkö

Abstract

This paper reexamines the determinants of redistribution in light of improved data and methods relative to earlier literature. In particular, we use the latest version of the UNU‐WIDER’s Income Inequality Database to have the best available estimates of both pre‐ and post‐redistribution inequality for the largest set of countries and periods. We tackle head‐on problems related to model specification that risk generating large biases in estimates because of mechanical associations between the dependent and explanatory variables. The results suggest that the bias in the earlier work can be substantial. The descriptive analysis highlights, in addition, how scarce the data are when it comes to information about the extent of redistribution in developing countries.

Suggested Citation

  • Markus Jäntti & Jukka Pirttilä & Risto Rönkkö, 2020. "The Determinants of Redistribution Around The World," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(1), pages 59-73, March.
    • Handle: RePEc:bla:revinw:v:66:y:2020:i:1:p:59-73
    DOI: 10.1111/roiw.12406
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    Cited by:

    1. Aiyar, Shekhar & Ebeke, Christian, 2020. "Inequality of opportunity, inequality of income and economic growth," World Development, Elsevier, vol. 136(C).
    2. Kreiner, Claus Thustrup & Olufsen, Isabel Skak, 2022. "Is inequality in subjective well-being meritocratic? Danish evidence from linked survey and administrative data," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 336-367.
    3. Lustig, Nora & Martinez Pabon, Valentina & Pessino, Carola, 2023. "Fiscal policy, income redistribution, and poverty reduction in Latin America," LSE Research Online Documents on Economics 120683, London School of Economics and Political Science, LSE Library.
    4. Vu, Trung V., 2022. "Unbundling the effect of political instability on income redistribution," European Journal of Political Economy, Elsevier, vol. 75(C).
    5. Lustig, Nora & Martinez Pabon, Valentina & Pessino, Carola, 2023. "Fiscal Policy, Income Redistribution, and Poverty Reduction in Latin America," IDB Publications (Working Papers) 13193, Inter-American Development Bank.
    6. Cafferata, Alessia & Cerruti, Gianluca & Mazzone, Giulio, 2022. "Taxation, health system endowment and quality of institutions: a "social" perception across Europe," MPRA Paper 112118, University Library of Munich, Germany.

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