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Measuring the impact of redistribution on income inequality and polarization

Author

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  • Maria Molnar

    (Institute of National Economy – Romanian Academy)

Abstract

The redistribution, i.e. social transfers (benefits), taxes and social contributions, has an important contribution in reducing income inequality and polarization, the tax-benefit system being the main instrument of the income policy. The paper presents the results of an evaluation of the impact of income redistribution on households’ income inequality and polarization in Romania during 1995 to 2008 years. In the first part of the paper the main methodological issues of the measurement are being reviewed. According to the results of the measurement, which are dealt with in the second section, the redistribution had an increasing lessening effect on the extent of inequality and polarization. The social transfers, especially pensions, were the main equalising component of the redistribution over the entire period.

Suggested Citation

  • Maria Molnar, 2010. "Measuring the impact of redistribution on income inequality and polarization," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 7-27, December.
    • Handle: RePEc:cbu:jrnlec:y:2010:v:4.i:p:7-27
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    References listed on IDEAS

    as
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