IDEAS home Printed from https://ideas.repec.org/p/lis/liswps/265.html
   My bibliography  Save this paper

Distribution and Redistribution in Post-Industrial Democracies

Author

Listed:
  • Stephanie Moller
  • Francois Nielsen
  • John D. Stephens
  • Evelyne Huber
  • David Bradley

Abstract

This paper analyzes the processes of distribution and redistribution in post-industrial democracies. We combine a pooled time series data base on welfare state effort and its determinants assembled by Huber, Ragin, and Stephens (1997) with data on income distribution assembled in the Luxembourg Income Survey (LIS) archive. In the case of the LIS data, we re-calculate the micro-data in order to remove the distorting influence of pensioners on pre-tax, pre transfer income distribution. We examine the determinants of three dependent variables: pre-tax, pre-transfer income inequality, post- tax, post transfer income inequality and the proportional reduction in inequality from pre to post tax and transfer inequality. We hypothesized that pre-tax, pre-transfer income inequality would be determined by labor market institutions (union density, bargaining centralization), labor market conditions (unemployment), and economic structures (post-industrialism, third world imports). We hypothesized that the reduction in inequality would be determined by political configurations: directly by left government and indirectly via their effect on welfare state generosity by left government and Christian democratic government. Post tax and transfer income inequality was hypothesized to be a product of the combination of labor market variables and political variables. The results broadly confirms our hypotheses and the overall fit is very good.

Suggested Citation

  • Stephanie Moller & Francois Nielsen & John D. Stephens & Evelyne Huber & David Bradley, 2001. "Distribution and Redistribution in Post-Industrial Democracies," LIS Working papers 265, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:265
    as

    Download full text from publisher

    File URL: http://www.lisdatacenter.org/wps/liswps/265.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Iversen, Torben, 1998. "Wage Bargaining, Central Bank Independence, and the Real Effects of Money," International Organization, Cambridge University Press, vol. 52(3), pages 469-504, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Henri L.F. de Groot & Richard Nahuis & Paul J.G. Tang & John Fitz Gerald, 2006. "Is the American Model Miss World? Choosing Between the Anglo-Saxon Model and a European-Style Alternative," Chapters, in: Susanne Mundschenk & Michael H. Stierle & Ulrike Stierle-von Schütz & Iulia Traistaru-Siedschlag (ed.), Competitiveness and Growth in Europe, chapter 6, Edward Elgar Publishing.
    2. repec:use:tkiwps:022 is not listed on IDEAS
    3. 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.
    4. R. Nahuis & H.M. de Groot, 2003. "Rising Skills Premia. You ain't seen nothing yet," Working Papers 03-02, Utrecht School of Economics.
    5. Vincent Mahler, 2001. "Economic Globalization, Domestic Politics and Income Inequality in the Developed Countries: A Cross-National Analysis," LIS Working papers 273, LIS Cross-National Data Center in Luxembourg.
    6. Van Mechelen, Natascha & De Maesschalck, Veerle, 2007. "Devolution as a means to adequate social safety nets?," MPRA Paper 13419, University Library of Munich, Germany.
    7. Bjarne Jansson & Jahangir Khan, 2006. "Redistributive Outcome of Sickness Insurance - An Empirical Study of Social Insurance Institutions," LIS Working papers 442, LIS Cross-National Data Center in Luxembourg.
    8. R. Nahuis & H.M. de Groot, 2003. "Rising Skills Premia. You ain't seen nothing yet," Working Papers 03-02, Utrecht School of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kenworthy, Lane, 2000. "Quantitative indicators of corporatism: A survey and assessment," MPIfG Discussion Paper 00/4, Max Planck Institute for the Study of Societies.
    2. Fanti, Luciano, 2013. "Cross-ownership and unions in a Cournot duopoly: When profits reduce with horizontal product differentiation," Japan and the World Economy, Elsevier, vol. 27(C), pages 34-40.
    3. Henrik Cronqvist & Fredrik Heyman & Mattias Nilsson & Helena Svaleryd & Jonas Vlachos, 2009. "Do Entrenched Managers Pay Their Workers More?," Journal of Finance, American Finance Association, vol. 64(1), pages 309-339, February.
    4. Christoph S. Weber, 2020. "The unemployment effect of central bank transparency," Empirical Economics, Springer, vol. 59(6), pages 2947-2975, December.
    5. Groth, Charlotta & Johansson, Asa, 2004. "Bargaining structure and nominal wage flexibility," European Economic Review, Elsevier, vol. 48(6), pages 1349-1365, December.
    6. Luciano Fanti & Nicola Meccheri, 2012. "Profits and competition in a unionized duopoly model with product differentiation and labour decreasing returns," Discussion Papers 2012/133, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    7. Aidt, T.S. & Tzannatos, Z., 2005. "The Cost and Benefits of Collective Bargaining," Cambridge Working Papers in Economics 0541, Faculty of Economics, University of Cambridge.
    8. Arijit Mukherjee & Kullapat Suetrong, 2012. "Unionisation Structure and Outward Foreign Direct Investment," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 168(2), pages 266-279, June.
    9. Franz Traxler & Bernd Brandl, 2012. "Collective Bargaining, Inter‐Sectoral Heterogeneity and Competitiveness: A Cross‐National Comparison of Macroeconomic Performance," British Journal of Industrial Relations, London School of Economics, vol. 50(1), pages 73-98, March.
    10. Hornstein, Andreas & Krusell, Per & Violante, Giovanni L., 2005. "The Effects of Technical Change on Labor Market Inequalities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 20, pages 1275-1370, Elsevier.
    11. Hamzeh Arabzadeh, 2016. "The political economy of twin deficits and wage setting centralization," LIDAM Discussion Papers IRES 2016017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    12. Iversen, Torben & Cusack, Thomas R., 1998. "The causes of welfare state expansion: deindustrialization or globalization?," Discussion Papers, Research Unit: Economic Change and Employment FS I 98-304, WZB Berlin Social Science Center.
    13. Gatti, Donatella & van Wijnbergen, Christa, 1999. "The case for a symmetric reaction function of the European Central Bank," Discussion Papers, Research Unit: Economic Change and Employment FS I 99-305, WZB Berlin Social Science Center.
    14. Joanna Tyrowicz, 2009. "When Eastern Labour Markets Enter Western Europe CEECs. Labour Market Institutions upon Euro Zone Accession," Working Papers 2009-03, Faculty of Economic Sciences, University of Warsaw.
    15. Helge Sanner, 2006. "Imperfect goods and labor markets, and the union wage gap," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(1), pages 119-136, February.
    16. Greg Fuller & Alison Johnston & Aidan Regan, 2018. "Bringing the Household Back in. Comparative Capitalism and the Politics of Housing Markets," Working Papers 201807, Geary Institute, University College Dublin.
    17. Alison Johnston, 2011. "The Revenge of Baumol's Cost Disease?: Monetary Union and the Rise of Public Sector Wage Inflation," LEQS – LSE 'Europe in Question' Discussion Paper Series 32, European Institute, LSE.
    18. Salvador Ortigueira, 2013. "The Rise and Fall of Centralized Wage Bargaining," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(3), pages 825-855, July.
    19. Tim Vlandas, 2016. "The impact of the elderly on inflation rates in developed countries," LEQS – LSE 'Europe in Question' Discussion Paper Series 107, European Institute, LSE.
    20. Lars Calmfors, 2001. "Wages and Wage-Bargaining Institutions in the Emu : A Survey of the Issues," CESifo Working Paper Series 520, CESifo.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lis:liswps:265. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Piotr Paradowski (email available below). General contact details of provider: https://edirc.repec.org/data/lisprlu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.