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The Impact Of Tax Revenue And Social Welfare Expenditure On Income Distribution In Taiwan

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  • Chih-Chien Jao

Abstract

In this article we consider data from national surveys of family income and expenditure in Taiwan. We explore why income distribution declined before 1980 and rose after 1980. We also analyse the extent of the impact of tax revenue and social welfare expenditure by the government on income distribution. Research results indicate that the effects of social welfare expenditure were increasingly significant in influencing income distribution and replaced the effects of tax revenue. Social welfare expenditure became the main factor restricting expansion of the income gap.

Suggested Citation

  • Chih-Chien Jao, 2000. "The Impact Of Tax Revenue And Social Welfare Expenditure On Income Distribution In Taiwan," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 5(1-2), pages 73-90.
    • Handle: RePEc:taf:rjapxx:v:5:y:2000:i:1-2:p:73-90
    DOI: 10.1080/13547860008540784
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    Cited by:

    1. Iris Claus & Jorge Martinez-Vazquez & VIoleta Vulovic, 2012. "Government Fiscal Policies and Redistribution in Asian Countries," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1213, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    2. Ismail M. Cole, 2023. "The political economy triangle of government spending, interest‐group influence, and income inequality: Evidence and implications from the US states," Economics and Politics, Wiley Blackwell, vol. 35(3), pages 1122-1176, November.
    3. Jorge Martínez-Vázquez & Violeta Vulovic & Blanca Moreno Dodson, 2012. "The Impact of Tax and Expenditure Policies on Income Distribution: Evidence from a Large Panel of Countries," Hacienda Pública Española / Review of Public Economics, IEF, vol. 200(1), pages 95-130, March.
    4. Judith Liu & Mei‐Ying Lai & Zong‐Shin Liu, 2022. "Trade liberalization, domestic reforms, and income inequality: Evidence from Taiwan," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1286-1309, August.
    5. Hulya Dagdeviren & Rolph van der Hoeven & John Weeks, 2002. "Redistribution Does Matter: Growth and Redistribution for Poverty Reduction," WIDER Working Paper Series DP2002-05, World Institute for Development Economic Research (UNU-WIDER).

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