Discussion Papers no. 649

On the meaning and measurement of redistribution in cross-country comparisons

Empirical findings on the relationship between income inequality and redistribution from a cross-country perspective are not conclusive. One reason may be that observers have in mind different concepts of redistribution. A major factor is that comparator countries’ pre-fisc distributions typically differ markedly, and account is taken of this differently (if at all) by different measures of redistribution. The ambiguities can be resolved by applying the “transplant-and-compare” approach, rendering fiscal regimes into a common base by adjusting for differences in pre-fisc income inequality, and then measuring the “pure” effect of tax-and-transfer policies using this benchmark. We illustrate both what is possible, and what remains problematic, using this technique, by conducting an exploratory international comparison, based on microdata from the Luxembourg Income Study database in combination with more aggregated information from the OECD, for 15 countries.

Om publikasjonen

Tittel

On the meaning and measurement of redistribution in cross-country comparisons

Ansvarlige

Peter J. Lambert, Runa Nesbakken, Thor Olav Thoresen

Serie og -nummer

Discussion Papers no. 649

Utgiver

Statistics Norway

Emne

Discussion Papers

ISSN

1892-753X

Antall sider

32

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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