The Determinants of Redistribution Around The World

Markus Jäntti, Jukka Pirttilä, Risto Rönkkö

Research output: Contribution to journalArticleScientificpeer-review

Abstract

This paper reexamines the determinants of redistribution in light of improved data and methods relative to earlier literature. In particular, we use the latest version of the UNU-WIDER's Income Inequality Database to have the best available estimates of both pre- and post-redistribution inequality for the largest set of countries and periods. We tackle head-on problems related to model specification that risk generating large biases in estimates because of mechanical associations between the dependent and explanatory variables. The results suggest that the bias in the earlier work can be substantial. The descriptive analysis highlights, in addition, how scarce the data are when it comes to information about the extent of redistribution in developing countries.

Original languageEnglish
JournalReview of Income and Wealth
Volume66
Issue number1
Pages (from-to)59-73
Number of pages15
ISSN0034-6586
DOIs
Publication statusPublished - Mar 2020
MoE publication typeA1 Journal article-refereed

Fields of Science

  • 511 Economics
  • inequality
  • redistribution
  • cross-country analysis
  • INCOME INEQUALITY
  • NATURAL-RESOURCES

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