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State Redistribution in Comparative Perspective: A Cross-National Analysis of the Developed Countries

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  • Vincent Mahler
  • David Jesuit

Abstract

The aim of this paper is to offer an overview of the many opportunities the Luxembourg Income Study (LIS) data set provides to measure the distributive effect of taxes and transfers in the developed countries. Two specific tasks are undertaken. First, and most important, the paper offers a detailed discussion of a number of aspects of fiscal redistribution, presenting a good deal of newly computed data that are, to our knowledge, unavailable elsewhere. LIS data are detailed enough to allow us not only to measure overall redistribution, but also to explore whether redistribution has been achieved primarily through taxes or transfers; to compare the redistributive effect of the most important individual transfers; to determine whether redistribution is associated with the size or the internal target efficiency of social benefits; to focus separately on redistribution across all income groups, lower, middle and upper income groups, and those in poverty; and to examine separately households headed by persons of working age. Second, the paper places fiscal redistribution in a broader context by discussing several aspects of redistribution that are not directly measured in LIS surveys. These include the redistributive effect of in-kind benefits, which we will explore using an imputation method; and second-order effects, whereby direct transfers affect pregovernment private sector income, in turn affecting measures of direct state transfers.

Suggested Citation

  • Vincent Mahler & David Jesuit, 2004. "State Redistribution in Comparative Perspective: A Cross-National Analysis of the Developed Countries," LIS Working papers 392, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:392
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    Cited by:

    1. 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.
    2. Chritoph Birkel, 2005. "Einkommensungleichheit und Umverteilung in Westdeutschland, Großbritannien und Schweden, 1950-2000," LIS Working papers 425, LIS Cross-National Data Center in Luxembourg.
    3. Daniela Sonedda & Gilberto Turati, 2005. "Winners and Losers in the Italian Welfare State: A Microsimulation Analysis of Income Redistribution Considering In-Kind Transfers," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(4), pages 423-464, December.
    4. 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.
    5. Lane Kenworthy & Jonas Pontusson, 2005. "Rising Inequality and the Politics of Redistribution in Affluent Countries," LIS Working papers 400, LIS Cross-National Data Center in Luxembourg.
    6. Cem Baslevent, 2016. "Social Transfers and Income Inequality in Turkey: How Important is the Gender Dimension?," Working Papers 1013, Economic Research Forum, revised Jun 2016.
    7. Christoph Birkel, 2006. "Einkommensungleichheit und Umverteilung in Westdeutschland, Großbritannien und Schweden 1950 bis 2000," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 75(1), pages 174-194.

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