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Four profiles of inequality and tax redistribution in Europe

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  • Frederico Cantante

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Abstract

The rise of economic inequality in the past few decades is one of the most relevant phenomena in western countries recent history. Market income distribution pushed inequality up and challenged welfare state capacity to deal with economic gaps. Market inequality or gross income inequality are considerably higher than disposable income inequality. This has to do with redistributive state policies. This paper analyses gross income inequality in the EU countries and measure the impact of personal taxes on income distribution. Several measures of redistributive tax impact on income inequality will be explored. Having in consideration both the level of gross income inequality and the impact of personal taxes on top shares, a typology of income distribution and redistribution in Europe will be drawn.

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  • Frederico Cantante, 2020. "Four profiles of inequality and tax redistribution in Europe," Palgrave Communications, Palgrave Macmillan, vol. 7(1), pages 1-7, December.
    • Handle: RePEc:pal:palcom:v:7:y:2020:i:1:d:10.1057_s41599-020-0514-4
    DOI: 10.1057/s41599-020-0514-4
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    Cited by:

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    2. Markina Oksana, 2022. "Taxation, Inequality, and Poverty: Evidence from Ukraine," Central European Economic Journal, Sciendo, vol. 9(56), pages 1-18, January.
    3. Jiancai Pi & Xinyi Liu, 2024. "State capacity, tax evasion, and wage inequality," Australian Economic Papers, Wiley Blackwell, vol. 63(4), pages 594-626, December.
    4. Dias, Thiago & Gonçalves, Sebastián, 2024. "Effectiveness of wealth-based vs exchange-based tax systems in reducing inequality," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 641(C).
    5. Ziyang Yue & Gangqiang Yang & Haisen Wang, 2023. "How do tax reductions motivate technological innovation?," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-18, December.
    6. Ruiqiao Bai & Jacqueline C. K. Lam & Victor O. K. Li, 2023. "What dictates income in New York City? SHAP analysis of income estimation based on Socio-economic and Spatial Information Gaussian Processes (SSIG)," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.

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