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The Distribution of Income in the UK and OECD Countries in the Twentieth Century

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  • Atkinson, A B

Abstract

Distributional changes are an important part of the economic history of the OECD countries over the twentieth century. In the UK, income inequality in the 1970s was substantially lower than 40 years earlier, and is now much higher than in 1979. The pattern of change in the USA has similarities to that in the UK, but other countries have exhibited significant differences. In order to explain diversity of experience over time, and differences in income inequality across countries today, we need to recognize that the distribution of income is subject to a variety of forces, affecting earnings, wealth, and income. These forces include the policy choices made by governments affecting market incomes and fiscal redistribution. What we need to explain is why in some periods a number of these forces combine to produce episodes of rising, or falling, inequality. Any single theory, such as that based on a global shift of demand away from unskilled workers, cannot provide a fully adequate explanation. Copyright 1999 by Oxford University Press.

Suggested Citation

  • Atkinson, A B, 1999. "The Distribution of Income in the UK and OECD Countries in the Twentieth Century," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 15(4), pages 56-75, Winter.
    • Handle: RePEc:oup:oxford:v:15:y:1999:i:4:p:56-75
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    Cited by:

    1. Bea Cantillon & Karel van den Bosch, 2002. "Social Policy Strategies to Combat Income Poverty of Children and Families in Europe," LIS Working papers 336, LIS Cross-National Data Center in Luxembourg.
    2. Sarkar Saikat & Tuomala Matti, 2018. "Asset bubbles in explaining top income shares," Working Papers 1821, Tampere University, Faculty of Management and Business, Economics.
    3. Stephen J. Turnovsky & Iñaki Erauskin, 2022. "Productive government expenditure and its impact on income inequality: evidence from international panel data," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(1), pages 331-364, February.
    4. Chris Belfield & Richard Blundell & Jonathan Cribb & Andrew Hood & Robert Joyce, 2017. "Two Decades of Income Inequality in Britain: The Role of Wages, Household Earnings and Redistribution," Economica, London School of Economics and Political Science, vol. 84(334), pages 157-179, April.
    5. Klass, Oren S. & Biham, Ofer & Levy, Moshe & Malcai, Ofer & Solomon, Sorin, 2006. "The Forbes 400 and the Pareto wealth distribution," Economics Letters, Elsevier, vol. 90(2), pages 290-295, February.
    6. Erauskin, Iñaki & Turnovsky, Stephen J., 2022. "International financial integration, the level of development, and income inequality: Some empirical evidence," International Review of Economics & Finance, Elsevier, vol. 82(C), pages 48-64.
    7. Kazutoshi Miyazawa, 2006. "Growth and inequality: a demographic explanation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(3), pages 559-578, July.
    8. Stephen J. Turnovsky & Aditi Mitra, 2013. "The Interaction between Human and Physical Capital Accumulation and the Growth-Inequality Trade-off," Journal of Human Capital, University of Chicago Press, vol. 7(1), pages 26-75.
    9. Kirill Borissov & Stefano Bosi & Thai Ha-Huy & Leonor Modesto, 2017. "Heterogeneous Human Capital, Inequality and Growth: The Role of Patience and Skills," EUSP Department of Economics Working Paper Series 2017/03, European University at St. Petersburg, Department of Economics.
    10. Stephen J. Turnovsky, 2011. "The Accumulation of Human Capital and Income Inequality in a Two-Sector Economy," Journal of Human Capital, University of Chicago Press, vol. 5(4), pages 418-452.
    11. Carmela Martin & Francisco J. Velazquez & Bernard Funck, 2001. "European Integration and Income Convergence : Lessons for Central and Eastern European Countries," World Bank Publications - Books, The World Bank Group, number 13968.
    12. Richard Blundell, 2022. "Inequality, Redistribution and Wage Progression," Economica, London School of Economics and Political Science, vol. 89(S1), pages 160-177, June.
    13. -, 2003. "Une décennie d'ombres et de lumières: l'Amérique Latine et les Caraibes dans les années 90," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 2358 edited by Cepalc.
    14. Carmela Martin & Francisco J. Velazquez., 2001. "An Assessment of Real Convergence of Less Developed EU Members: Lessons for the CEEC Candidates," European Economy Group Working Papers 5, European Economy Group.
    15. Kaltenborn, Bruno & Klös, Hans-Peter, 2000. "Arbeitmarktstatus- und Lohnmobilität in Westdeutschland 1984/96," IW-Trends – Vierteljahresschrift zur empirischen Wirtschaftsforschung, Institut der deutschen Wirtschaft (IW) / German Economic Institute, vol. 27(2), pages 24-45.
    16. Guerrazzi, Marco & Meccheri, Nicola, 2012. "From wage rigidity to labour market institution rigidity: A turning-point in explaining unemployment?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(2), pages 189-197.
    17. Robert Joyce, 2015. "Child poverty in Britain: recent trends and future prospects," IFS Working Papers W15/07, Institute for Fiscal Studies.
    18. Blackaby, D.H. & Carlin, Paul S. & Murphy, P.D., 2007. "A change in the earnings penalty for British men with working wives: Evidence from the 1980's and 1990's," Labour Economics, Elsevier, vol. 14(1), pages 119-134, January.
    19. Bea Cantillon & Karel van den Bosch & Ive Marx, 2002. "The Puzzle of Egalitarianism: About the Relationships between Employment, Wage Inequality, Social Expenditures and Poverty," LIS Working papers 337, LIS Cross-National Data Center in Luxembourg.
    20. CROCI ANGELINI Elisabetta & D'AMBROSIO Conchita & FARINA Francesco, 2001. "Do Preferences in EU Member-States Support Fiscal Federalism?," IRISS Working Paper Series 2002-01, IRISS at CEPS/INSTEAD.
    21. Borissov, Kirill & Bosi, Stefano & Ha-Huy, Thai & Modesto, Leonor, 2016. "Inequality and Growth: The Role of Human Capital with Heterogeneous Skills," IZA Discussion Papers 10090, Institute of Labor Economics (IZA).

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