SlideShare a Scribd company logo
Income Inequality and Redistribution: Demographic, Economic, and Political Determinants 
Evelyne Huber and John D. Stephens 
University of North Carolina at Chapel Hill
The problem 
•For roughly half a century beginning in the late 1920s, income inequality declined in most of the industrial countries (Western Europe, North America, Australia, New Zealand, and Japan). 
•In the thirty years after WWII, the Golden Age of high economic growth, this trend was reinforced by the rapid expansion of the welfare state which redistributed income to low income groups, to different degrees in different countries. 
•Since the mid seventies, inequality has grown in all of these countries to different degrees. 
•In the extreme case of the US, the incomes of families in the lower half of the income distribution have stagnated. All of the benefits of economic growth have been reaped by high income households, especially the very rich.
LIS data 
•Gold standard for data on income inequality, harmonized 
•Micro data available, making it possible to isolate groups, multi-level analysis, etc. 
•Most post industrial democracies, adding countries in Latin America and Asia 
•18 Post industrial democracies 
•Unbalanced, varying number of time observations per case (3- 11) 
•Many gaps  Random effects rather than Prais Winsten regressions.
Welfare State Regimes 
•Nordic/ Social democratic 
–Generous; redistributive; universal; service-heavy 
•Continental/ Christian democratic 
–Generous/ less redistributive; few services 
•Anglo-Saxon/ Liberal 
–Residual/ targeted; few services/ but NHS 
•Mediterranean/ Conservative and late 
–Corporatist/ catch-up with universal elements
Table 1: Trends in inequality by regimeEstimatedAverage changePre tax and transfer inequality1985 Levelper decadeNNordic30.92.224Continental Europe33.91.333Southern Europe35.42.018Anglo-American countries37.63.441RedistributionNordic33%2.424Continental Europe24%1.034Southern Europe13%2.218Anglo-American countries21%1.941Post tax and transfer inequalityNordic20.5.724Continental Europe25.6.633Southern Europe31.2.718Anglo-American countries29.62.041
Determinants of pre tax and transfer houshold income inequality 
•Wage dispersion 
–Union density 
–Bargaining centralization 
–Left government 
–Nickell – skill dispersion 
•Household change, single mother households 
•De-industrialization 
•Employment levels 
•Race between education and technology – education spending
Household Change 
•Increasing rates of divorce  of single-mother households 
•Low participation in labor market  high risk of poverty 
•Significant differences between countries because of differences in availability of child care  labor market participation of single mothers, and generosity of transfers  poverty levels
Deindustrialization 
•In all advanced industrial societies and even the more advanced developing countries, the proportion of the labor force in industry has declined (technological progress and globalization). 
•Result: disappearance of relatively well-paid jobs for low-skilled workers, as low-skilled jobs in the service sector tend to have lower productivity and pay less
Race between Technology and Education 
•Transition to the knowledge society requires an ever more skilled labor force 
•To have an ample supply, you would need growing investment in high quality education 
•In some countries (specifically the US), investment in public education has not kept pace with need, and the imbalance between supply and demand for skilled labor drives up pay for skilled labor
Determinants of Market Income Distributions (before taxes and transfers)
-5 
-4 
-3 
-2 
-1 
0 
1 
2 
3 
4 
5 
6 
Unemployment 
Union density 
% of children living in single mother households 
Industrial employment 
Education Spending 
Employment as a % of the working age population 
Determinants of Market Income Distribution
Inequality=42.5 -.103 test score, R2=.64
Causes of increases in market income inequality 
Nordic countries 
•Deindustrialization 
•Slightly declining employment from very high level 
•Unemployment increase highest (from lowest initial level) 
•Increase in children in single mother households 
•Countervailing factor: education spending, starts at the highest level and strongest increase at 0.3% per decade 
Continental Europe 
•Deindustrialization 
•Increase in children in single mother households 
•Increases in unemployment 
•Countervailing factor: increase in employment 
Anglo-American countries 
•Deindustrialization 
•Largest increase in children in single mother households from highest initial level 
•Decreasing education spending, losing “race between education and technology”
Hypotheses on Causes of Redistribution 
•Size of transfers: it IS true that you can solve some problems by throwing money at them; e.g. generous unemployment benefits and child allowances or minimum income schemes 
•Structure of transfers determined by left/ right and Christian democratic politics 
•Problem pressure: at any given level of entitlements, larger problems will result in larger redistribution
-4 
-3 
-2 
-1 
0 
1 
2 
3 
4 
5 
6 
Left cabinet 
Unemployment replacement rates 
Unemployment 
% of children living in single mother households 
Employment as a % of the working age population 
Redistribution
Table 6: Trends in "policy" redistribution by regimeEstimatedAverage change1985 Levelper decadeNAll countries15%-.2117Nordic24%.224Continental Europe16%-.534Southern Europe1%3.618Anglo-American countries10%.441
Thanks for your attention!
-1.5 
-1 
-0.5 
0 
0.5 
1 
1.5 
2 
Nonaged spending 
Nonaged spending 
Social spending 
Social spending 
ALMP spending 
Daycare spending 
Health care spending 
Health care spending 
Education spending 
Parental leave replacement rate 
Unemployment replacement rate 
Unemployment replacement rate 
Sickpay replacement rate 
Sickpay replacement rate 
Minimum pension replacement rates 
Standard pension replacement rates 
Government service employment 
Government service employment 
Redistribution 
Poverty 
Poverty 
Child poverty 
Single mother poverty 
Single mother poverty 
a. Pre 1986
-1.5 
-1 
-0.5 
0 
0.5 
1 
1.5 
2 
Social spending 
Daycare spending 
Health care spending 
Education spending 
Parental leave replacement rate 
Standard pension replacement rates 
Government service employment 
Government service employment 
Poverty 
Single mother poverty 
b. Post 1985 
Social democratic government Christian democratic government

More Related Content

What's hot

8.3 standard of living
8.3 standard of living8.3 standard of living
8.3 standard of living
jkoryan
 
VARHS launch slides 5 August 2015
VARHS launch slides 5 August 2015VARHS launch slides 5 August 2015
VARHS launch slides 5 August 2015
UNU-WIDER
 
Aging workforce of Europe
Aging workforce of EuropeAging workforce of Europe
Aging workforce of Europe
Amna Tariq
 
Lect 4 responding to inequality
Lect 4   responding to inequalityLect 4   responding to inequality
Lect 4 responding to inequalityDan Curtis
 
How Was Life? Key Findings
How Was Life? Key FindingsHow Was Life? Key Findings
How Was Life? Key Findings
StatsCommunications
 
HUMANITY DIVIDED: Confronting inequality in Developing Countries
HUMANITY DIVIDED: Confronting inequality in Developing CountriesHUMANITY DIVIDED: Confronting inequality in Developing Countries
HUMANITY DIVIDED: Confronting inequality in Developing Countries
UNDP Eurasia
 
Economic inequality
Economic inequalityEconomic inequality
Economic inequalityTauhid Alam
 
Population management
Population managementPopulation management
Population managementMrs Coles
 
Eastern Cape reflections final
Eastern Cape reflections finalEastern Cape reflections final
Eastern Cape reflections final
Russell Grinker
 
How's Life 2017 - Key Findings
How's Life 2017 - Key FindingsHow's Life 2017 - Key Findings
How's Life 2017 - Key Findings
StatsCommunications
 
Poverty Reduction Policies in Low Income Countries
Poverty Reduction Policies in Low Income CountriesPoverty Reduction Policies in Low Income Countries
Poverty Reduction Policies in Low Income Countries
tutor2u
 
Economic Inequality in Developing Country
Economic Inequality in Developing CountryEconomic Inequality in Developing Country
Economic Inequality in Developing Country
Khulna University
 
Economics: Poverty, Inequality & Development
Economics: Poverty, Inequality & Development Economics: Poverty, Inequality & Development
Economics: Poverty, Inequality & Development
Lilliene Alleje
 
Lect 2 rev - determinants and consequences of inequality copy
Lect 2 rev - determinants and consequences of inequality copyLect 2 rev - determinants and consequences of inequality copy
Lect 2 rev - determinants and consequences of inequality copyDan Curtis
 
Wealth inequality
Wealth inequalityWealth inequality
Wealth inequality
Felisha Coutu
 
Session 6 c stik
Session 6 c stikSession 6 c stik
Session 6 c stik
IARIW 2014
 
Factors Influencing Development
Factors Influencing DevelopmentFactors Influencing Development
Factors Influencing DevelopmentSHS Geog
 
Income inequality in South Africa report
Income inequality in South Africa reportIncome inequality in South Africa report
Income inequality in South Africa reportJOSEPH TEBOHO MOKOENA
 
How we measure development
How we measure developmentHow we measure development
How we measure development
Steven Heath
 
Economic sustainability
Economic sustainabilityEconomic sustainability
Economic sustainability
Rajat Nainwal
 

What's hot (20)

8.3 standard of living
8.3 standard of living8.3 standard of living
8.3 standard of living
 
VARHS launch slides 5 August 2015
VARHS launch slides 5 August 2015VARHS launch slides 5 August 2015
VARHS launch slides 5 August 2015
 
Aging workforce of Europe
Aging workforce of EuropeAging workforce of Europe
Aging workforce of Europe
 
Lect 4 responding to inequality
Lect 4   responding to inequalityLect 4   responding to inequality
Lect 4 responding to inequality
 
How Was Life? Key Findings
How Was Life? Key FindingsHow Was Life? Key Findings
How Was Life? Key Findings
 
HUMANITY DIVIDED: Confronting inequality in Developing Countries
HUMANITY DIVIDED: Confronting inequality in Developing CountriesHUMANITY DIVIDED: Confronting inequality in Developing Countries
HUMANITY DIVIDED: Confronting inequality in Developing Countries
 
Economic inequality
Economic inequalityEconomic inequality
Economic inequality
 
Population management
Population managementPopulation management
Population management
 
Eastern Cape reflections final
Eastern Cape reflections finalEastern Cape reflections final
Eastern Cape reflections final
 
How's Life 2017 - Key Findings
How's Life 2017 - Key FindingsHow's Life 2017 - Key Findings
How's Life 2017 - Key Findings
 
Poverty Reduction Policies in Low Income Countries
Poverty Reduction Policies in Low Income CountriesPoverty Reduction Policies in Low Income Countries
Poverty Reduction Policies in Low Income Countries
 
Economic Inequality in Developing Country
Economic Inequality in Developing CountryEconomic Inequality in Developing Country
Economic Inequality in Developing Country
 
Economics: Poverty, Inequality & Development
Economics: Poverty, Inequality & Development Economics: Poverty, Inequality & Development
Economics: Poverty, Inequality & Development
 
Lect 2 rev - determinants and consequences of inequality copy
Lect 2 rev - determinants and consequences of inequality copyLect 2 rev - determinants and consequences of inequality copy
Lect 2 rev - determinants and consequences of inequality copy
 
Wealth inequality
Wealth inequalityWealth inequality
Wealth inequality
 
Session 6 c stik
Session 6 c stikSession 6 c stik
Session 6 c stik
 
Factors Influencing Development
Factors Influencing DevelopmentFactors Influencing Development
Factors Influencing Development
 
Income inequality in South Africa report
Income inequality in South Africa reportIncome inequality in South Africa report
Income inequality in South Africa report
 
How we measure development
How we measure developmentHow we measure development
How we measure development
 
Economic sustainability
Economic sustainabilityEconomic sustainability
Economic sustainability
 

Similar to John Stephens UNC-CH 20140912

Inequality in Scotland
Inequality in ScotlandInequality in Scotland
Inequality in Scotland
stephenboydstuc
 
CURRENT EXPERIENCES AND TRENDS IN THE REFORM OF
CURRENT EXPERIENCES AND TRENDS IN THE REFORM OFCURRENT EXPERIENCES AND TRENDS IN THE REFORM OF
CURRENT EXPERIENCES AND TRENDS IN THE REFORM OFAnne Van Lancker
 
Population change revision
Population change revisionPopulation change revision
Population change revision
cpugh5345
 
VARHS Report Launch slides 5 August 2015
VARHS Report Launch slides 5 August 2015VARHS Report Launch slides 5 August 2015
VARHS Report Launch slides 5 August 2015
UNU-WIDER
 
Functional Income inequality and the post 2015 Agenda - presentation by Rolp...
Functional Income inequality and the post 2015 Agenda - presentation by Rolp...Functional Income inequality and the post 2015 Agenda - presentation by Rolp...
Functional Income inequality and the post 2015 Agenda - presentation by Rolp...
reinoutthebroker
 
4b_World_Bank__17_.pptx
4b_World_Bank__17_.pptx4b_World_Bank__17_.pptx
4b_World_Bank__17_.pptx
satyamKushwaha38
 
4b_World_Bank__17_.pptx
4b_World_Bank__17_.pptx4b_World_Bank__17_.pptx
4b_World_Bank__17_.pptx
AbdullahBinzahir
 
Fiscal policy in an age of inequality
Fiscal policy in an age of inequalityFiscal policy in an age of inequality
Fiscal policy in an age of inequality
ekleinbard
 
Regional development
Regional developmentRegional development
Regional development
Yonas Gemeda
 
Plenary session 3 3 tim smeeding stik iariw
Plenary session 3 3 tim smeeding stik iariwPlenary session 3 3 tim smeeding stik iariw
Plenary session 3 3 tim smeeding stik iariw
IARIW 2014
 
Inequality and Equality in the UK.pptx
Inequality and Equality in the UK.pptxInequality and Equality in the UK.pptx
Inequality and Equality in the UK.pptx
RayenKhelifi
 
Contemporary social issues final presentation
Contemporary social issues  final presentationContemporary social issues  final presentation
Contemporary social issues final presentationkaterinaantipas
 
Giving children a good start
Giving children a good startGiving children a good start
Giving children a good start
UKFacultyPublicHealth
 
Economic problems of development
Economic problems of developmentEconomic problems of development
Economic problems of development
Greenwich Council
 
Chapter 18 presentation
Chapter 18 presentationChapter 18 presentation
Chapter 18 presentationkrobinette
 
Econ789 chapter021
Econ789 chapter021Econ789 chapter021
Econ789 chapter021
sakanor
 

Similar to John Stephens UNC-CH 20140912 (20)

Decon 04
Decon 04Decon 04
Decon 04
 
Inequality in Scotland
Inequality in ScotlandInequality in Scotland
Inequality in Scotland
 
CURRENT EXPERIENCES AND TRENDS IN THE REFORM OF
CURRENT EXPERIENCES AND TRENDS IN THE REFORM OFCURRENT EXPERIENCES AND TRENDS IN THE REFORM OF
CURRENT EXPERIENCES AND TRENDS IN THE REFORM OF
 
Population change revision
Population change revisionPopulation change revision
Population change revision
 
VARHS Report Launch slides 5 August 2015
VARHS Report Launch slides 5 August 2015VARHS Report Launch slides 5 August 2015
VARHS Report Launch slides 5 August 2015
 
Decon 05
Decon 05Decon 05
Decon 05
 
Functional Income inequality and the post 2015 Agenda - presentation by Rolp...
Functional Income inequality and the post 2015 Agenda - presentation by Rolp...Functional Income inequality and the post 2015 Agenda - presentation by Rolp...
Functional Income inequality and the post 2015 Agenda - presentation by Rolp...
 
4b_World_Bank__17_.pptx
4b_World_Bank__17_.pptx4b_World_Bank__17_.pptx
4b_World_Bank__17_.pptx
 
4b_World_Bank__17_.pptx
4b_World_Bank__17_.pptx4b_World_Bank__17_.pptx
4b_World_Bank__17_.pptx
 
Fiscal policy in an age of inequality
Fiscal policy in an age of inequalityFiscal policy in an age of inequality
Fiscal policy in an age of inequality
 
Regional development
Regional developmentRegional development
Regional development
 
Plenary session 3 3 tim smeeding stik iariw
Plenary session 3 3 tim smeeding stik iariwPlenary session 3 3 tim smeeding stik iariw
Plenary session 3 3 tim smeeding stik iariw
 
Inequality and Equality in the UK.pptx
Inequality and Equality in the UK.pptxInequality and Equality in the UK.pptx
Inequality and Equality in the UK.pptx
 
Contemporary social issues final presentation
Contemporary social issues  final presentationContemporary social issues  final presentation
Contemporary social issues final presentation
 
Decon 01
Decon 01 Decon 01
Decon 01
 
Giving children a good start
Giving children a good startGiving children a good start
Giving children a good start
 
Economic problems of development
Economic problems of developmentEconomic problems of development
Economic problems of development
 
KK 4.1.1
KK 4.1.1KK 4.1.1
KK 4.1.1
 
Chapter 18 presentation
Chapter 18 presentationChapter 18 presentation
Chapter 18 presentation
 
Econ789 chapter021
Econ789 chapter021Econ789 chapter021
Econ789 chapter021
 

More from UNCEurope

What makes Muslims feel French? (Social Forces)
What makes Muslims feel French? (Social Forces)What makes Muslims feel French? (Social Forces)
What makes Muslims feel French? (Social Forces)
UNCEurope
 
Rahsaan Maxwell UNC-CH 140829
Rahsaan Maxwell UNC-CH 140829Rahsaan Maxwell UNC-CH 140829
Rahsaan Maxwell UNC-CH 140829
UNCEurope
 
Herman Schwartz UNC-CH 20130927
Herman Schwartz UNC-CH 20130927Herman Schwartz UNC-CH 20130927
Herman Schwartz UNC-CH 20130927UNCEurope
 
Jae-Jae Spoon UNC-CH 20130920
Jae-Jae Spoon UNC-CH 20130920Jae-Jae Spoon UNC-CH 20130920
Jae-Jae Spoon UNC-CH 20130920
UNCEurope
 
Seth Jolly UNC-CH 20130913
Seth Jolly UNC-CH 20130913Seth Jolly UNC-CH 20130913
Seth Jolly UNC-CH 20130913
UNCEurope
 
Mareike Kleine UNC-CH 20120907
Mareike Kleine UNC-CH 20120907Mareike Kleine UNC-CH 20120907
Mareike Kleine UNC-CH 20120907
UNCEurope
 
UNC Sustainability Symposium: Kim Marotta 2082013
UNC Sustainability Symposium: Kim Marotta 2082013UNC Sustainability Symposium: Kim Marotta 2082013
UNC Sustainability Symposium: Kim Marotta 2082013
UNCEurope
 
UNC Sustainability Symposium: Jennifer Turner 2082013
UNC Sustainability Symposium: Jennifer Turner 2082013UNC Sustainability Symposium: Jennifer Turner 2082013
UNC Sustainability Symposium: Jennifer Turner 2082013
UNCEurope
 
UNC Sustainability Symposium: Michael Mehling 2082013
UNC Sustainability Symposium: Michael Mehling 2082013UNC Sustainability Symposium: Michael Mehling 2082013
UNC Sustainability Symposium: Michael Mehling 2082013
UNCEurope
 
UNC Sustainability Symposium: Dale Medearis 2082013
UNC Sustainability Symposium: Dale Medearis 2082013UNC Sustainability Symposium: Dale Medearis 2082013
UNC Sustainability Symposium: Dale Medearis 2082013
UNCEurope
 
UNC Sustainability Symposium: Ted Howes 2082013
UNC Sustainability Symposium: Ted Howes 2082013UNC Sustainability Symposium: Ted Howes 2082013
UNC Sustainability Symposium: Ted Howes 2082013
UNCEurope
 
Peter Starke UNC-CH 20121102
Peter Starke UNC-CH 20121102Peter Starke UNC-CH 20121102
Peter Starke UNC-CH 20121102
UNCEurope
 
Herman Schwartz UNC-CH 20121116
Herman Schwartz UNC-CH 20121116Herman Schwartz UNC-CH 20121116
Herman Schwartz UNC-CH 20121116
UNCEurope
 
Risto Raivio UNC-CH 20120928
Risto Raivio UNC-CH 20120928Risto Raivio UNC-CH 20120928
Risto Raivio UNC-CH 20120928
UNCEurope
 
Gary Marks UNC-CH 20120914
Gary Marks UNC-CH 20120914Gary Marks UNC-CH 20120914
Gary Marks UNC-CH 20120914
UNCEurope
 
Layna Mosley UNC-CH 20121026
Layna Mosley UNC-CH 20121026Layna Mosley UNC-CH 20121026
Layna Mosley UNC-CH 20121026
UNCEurope
 

More from UNCEurope (16)

What makes Muslims feel French? (Social Forces)
What makes Muslims feel French? (Social Forces)What makes Muslims feel French? (Social Forces)
What makes Muslims feel French? (Social Forces)
 
Rahsaan Maxwell UNC-CH 140829
Rahsaan Maxwell UNC-CH 140829Rahsaan Maxwell UNC-CH 140829
Rahsaan Maxwell UNC-CH 140829
 
Herman Schwartz UNC-CH 20130927
Herman Schwartz UNC-CH 20130927Herman Schwartz UNC-CH 20130927
Herman Schwartz UNC-CH 20130927
 
Jae-Jae Spoon UNC-CH 20130920
Jae-Jae Spoon UNC-CH 20130920Jae-Jae Spoon UNC-CH 20130920
Jae-Jae Spoon UNC-CH 20130920
 
Seth Jolly UNC-CH 20130913
Seth Jolly UNC-CH 20130913Seth Jolly UNC-CH 20130913
Seth Jolly UNC-CH 20130913
 
Mareike Kleine UNC-CH 20120907
Mareike Kleine UNC-CH 20120907Mareike Kleine UNC-CH 20120907
Mareike Kleine UNC-CH 20120907
 
UNC Sustainability Symposium: Kim Marotta 2082013
UNC Sustainability Symposium: Kim Marotta 2082013UNC Sustainability Symposium: Kim Marotta 2082013
UNC Sustainability Symposium: Kim Marotta 2082013
 
UNC Sustainability Symposium: Jennifer Turner 2082013
UNC Sustainability Symposium: Jennifer Turner 2082013UNC Sustainability Symposium: Jennifer Turner 2082013
UNC Sustainability Symposium: Jennifer Turner 2082013
 
UNC Sustainability Symposium: Michael Mehling 2082013
UNC Sustainability Symposium: Michael Mehling 2082013UNC Sustainability Symposium: Michael Mehling 2082013
UNC Sustainability Symposium: Michael Mehling 2082013
 
UNC Sustainability Symposium: Dale Medearis 2082013
UNC Sustainability Symposium: Dale Medearis 2082013UNC Sustainability Symposium: Dale Medearis 2082013
UNC Sustainability Symposium: Dale Medearis 2082013
 
UNC Sustainability Symposium: Ted Howes 2082013
UNC Sustainability Symposium: Ted Howes 2082013UNC Sustainability Symposium: Ted Howes 2082013
UNC Sustainability Symposium: Ted Howes 2082013
 
Peter Starke UNC-CH 20121102
Peter Starke UNC-CH 20121102Peter Starke UNC-CH 20121102
Peter Starke UNC-CH 20121102
 
Herman Schwartz UNC-CH 20121116
Herman Schwartz UNC-CH 20121116Herman Schwartz UNC-CH 20121116
Herman Schwartz UNC-CH 20121116
 
Risto Raivio UNC-CH 20120928
Risto Raivio UNC-CH 20120928Risto Raivio UNC-CH 20120928
Risto Raivio UNC-CH 20120928
 
Gary Marks UNC-CH 20120914
Gary Marks UNC-CH 20120914Gary Marks UNC-CH 20120914
Gary Marks UNC-CH 20120914
 
Layna Mosley UNC-CH 20121026
Layna Mosley UNC-CH 20121026Layna Mosley UNC-CH 20121026
Layna Mosley UNC-CH 20121026
 

Recently uploaded

The approach at University of Liverpool.pptx
The approach at University of Liverpool.pptxThe approach at University of Liverpool.pptx
The approach at University of Liverpool.pptx
Jisc
 
How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...
Jisc
 
Synthetic Fiber Construction in lab .pptx
Synthetic Fiber Construction in lab .pptxSynthetic Fiber Construction in lab .pptx
Synthetic Fiber Construction in lab .pptx
Pavel ( NSTU)
 
Adversarial Attention Modeling for Multi-dimensional Emotion Regression.pdf
Adversarial Attention Modeling for Multi-dimensional Emotion Regression.pdfAdversarial Attention Modeling for Multi-dimensional Emotion Regression.pdf
Adversarial Attention Modeling for Multi-dimensional Emotion Regression.pdf
Po-Chuan Chen
 
Thesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.pptThesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.ppt
EverAndrsGuerraGuerr
 
678020731-Sumas-y-Restas-Para-Colorear.pdf
678020731-Sumas-y-Restas-Para-Colorear.pdf678020731-Sumas-y-Restas-Para-Colorear.pdf
678020731-Sumas-y-Restas-Para-Colorear.pdf
CarlosHernanMontoyab2
 
Francesca Gottschalk - How can education support child empowerment.pptx
Francesca Gottschalk - How can education support child empowerment.pptxFrancesca Gottschalk - How can education support child empowerment.pptx
Francesca Gottschalk - How can education support child empowerment.pptx
EduSkills OECD
 
The Roman Empire A Historical Colossus.pdf
The Roman Empire A Historical Colossus.pdfThe Roman Empire A Historical Colossus.pdf
The Roman Empire A Historical Colossus.pdf
kaushalkr1407
 
The geography of Taylor Swift - some ideas
The geography of Taylor Swift - some ideasThe geography of Taylor Swift - some ideas
The geography of Taylor Swift - some ideas
GeoBlogs
 
1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx
JosvitaDsouza2
 
Unit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdfUnit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdf
Thiyagu K
 
Embracing GenAI - A Strategic Imperative
Embracing GenAI - A Strategic ImperativeEmbracing GenAI - A Strategic Imperative
Embracing GenAI - A Strategic Imperative
Peter Windle
 
Language Across the Curriculm LAC B.Ed.
Language Across the  Curriculm LAC B.Ed.Language Across the  Curriculm LAC B.Ed.
Language Across the Curriculm LAC B.Ed.
Atul Kumar Singh
 
CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCECLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
BhavyaRajput3
 
Acetabularia Information For Class 9 .docx
Acetabularia Information For Class 9  .docxAcetabularia Information For Class 9  .docx
Acetabularia Information For Class 9 .docx
vaibhavrinwa19
 
How to Make a Field invisible in Odoo 17
How to Make a Field invisible in Odoo 17How to Make a Field invisible in Odoo 17
How to Make a Field invisible in Odoo 17
Celine George
 
The Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official PublicationThe Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official Publication
Delapenabediema
 
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
Nguyen Thanh Tu Collection
 
The French Revolution Class 9 Study Material pdf free download
The French Revolution Class 9 Study Material pdf free downloadThe French Revolution Class 9 Study Material pdf free download
The French Revolution Class 9 Study Material pdf free download
Vivekanand Anglo Vedic Academy
 
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
Levi Shapiro
 

Recently uploaded (20)

The approach at University of Liverpool.pptx
The approach at University of Liverpool.pptxThe approach at University of Liverpool.pptx
The approach at University of Liverpool.pptx
 
How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...
 
Synthetic Fiber Construction in lab .pptx
Synthetic Fiber Construction in lab .pptxSynthetic Fiber Construction in lab .pptx
Synthetic Fiber Construction in lab .pptx
 
Adversarial Attention Modeling for Multi-dimensional Emotion Regression.pdf
Adversarial Attention Modeling for Multi-dimensional Emotion Regression.pdfAdversarial Attention Modeling for Multi-dimensional Emotion Regression.pdf
Adversarial Attention Modeling for Multi-dimensional Emotion Regression.pdf
 
Thesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.pptThesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.ppt
 
678020731-Sumas-y-Restas-Para-Colorear.pdf
678020731-Sumas-y-Restas-Para-Colorear.pdf678020731-Sumas-y-Restas-Para-Colorear.pdf
678020731-Sumas-y-Restas-Para-Colorear.pdf
 
Francesca Gottschalk - How can education support child empowerment.pptx
Francesca Gottschalk - How can education support child empowerment.pptxFrancesca Gottschalk - How can education support child empowerment.pptx
Francesca Gottschalk - How can education support child empowerment.pptx
 
The Roman Empire A Historical Colossus.pdf
The Roman Empire A Historical Colossus.pdfThe Roman Empire A Historical Colossus.pdf
The Roman Empire A Historical Colossus.pdf
 
The geography of Taylor Swift - some ideas
The geography of Taylor Swift - some ideasThe geography of Taylor Swift - some ideas
The geography of Taylor Swift - some ideas
 
1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx
 
Unit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdfUnit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdf
 
Embracing GenAI - A Strategic Imperative
Embracing GenAI - A Strategic ImperativeEmbracing GenAI - A Strategic Imperative
Embracing GenAI - A Strategic Imperative
 
Language Across the Curriculm LAC B.Ed.
Language Across the  Curriculm LAC B.Ed.Language Across the  Curriculm LAC B.Ed.
Language Across the Curriculm LAC B.Ed.
 
CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCECLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
 
Acetabularia Information For Class 9 .docx
Acetabularia Information For Class 9  .docxAcetabularia Information For Class 9  .docx
Acetabularia Information For Class 9 .docx
 
How to Make a Field invisible in Odoo 17
How to Make a Field invisible in Odoo 17How to Make a Field invisible in Odoo 17
How to Make a Field invisible in Odoo 17
 
The Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official PublicationThe Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official Publication
 
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
 
The French Revolution Class 9 Study Material pdf free download
The French Revolution Class 9 Study Material pdf free downloadThe French Revolution Class 9 Study Material pdf free download
The French Revolution Class 9 Study Material pdf free download
 
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
 

John Stephens UNC-CH 20140912

  • 1. Income Inequality and Redistribution: Demographic, Economic, and Political Determinants Evelyne Huber and John D. Stephens University of North Carolina at Chapel Hill
  • 2. The problem •For roughly half a century beginning in the late 1920s, income inequality declined in most of the industrial countries (Western Europe, North America, Australia, New Zealand, and Japan). •In the thirty years after WWII, the Golden Age of high economic growth, this trend was reinforced by the rapid expansion of the welfare state which redistributed income to low income groups, to different degrees in different countries. •Since the mid seventies, inequality has grown in all of these countries to different degrees. •In the extreme case of the US, the incomes of families in the lower half of the income distribution have stagnated. All of the benefits of economic growth have been reaped by high income households, especially the very rich.
  • 3. LIS data •Gold standard for data on income inequality, harmonized •Micro data available, making it possible to isolate groups, multi-level analysis, etc. •Most post industrial democracies, adding countries in Latin America and Asia •18 Post industrial democracies •Unbalanced, varying number of time observations per case (3- 11) •Many gaps  Random effects rather than Prais Winsten regressions.
  • 4. Welfare State Regimes •Nordic/ Social democratic –Generous; redistributive; universal; service-heavy •Continental/ Christian democratic –Generous/ less redistributive; few services •Anglo-Saxon/ Liberal –Residual/ targeted; few services/ but NHS •Mediterranean/ Conservative and late –Corporatist/ catch-up with universal elements
  • 5. Table 1: Trends in inequality by regimeEstimatedAverage changePre tax and transfer inequality1985 Levelper decadeNNordic30.92.224Continental Europe33.91.333Southern Europe35.42.018Anglo-American countries37.63.441RedistributionNordic33%2.424Continental Europe24%1.034Southern Europe13%2.218Anglo-American countries21%1.941Post tax and transfer inequalityNordic20.5.724Continental Europe25.6.633Southern Europe31.2.718Anglo-American countries29.62.041
  • 6. Determinants of pre tax and transfer houshold income inequality •Wage dispersion –Union density –Bargaining centralization –Left government –Nickell – skill dispersion •Household change, single mother households •De-industrialization •Employment levels •Race between education and technology – education spending
  • 7. Household Change •Increasing rates of divorce  of single-mother households •Low participation in labor market  high risk of poverty •Significant differences between countries because of differences in availability of child care  labor market participation of single mothers, and generosity of transfers  poverty levels
  • 8. Deindustrialization •In all advanced industrial societies and even the more advanced developing countries, the proportion of the labor force in industry has declined (technological progress and globalization). •Result: disappearance of relatively well-paid jobs for low-skilled workers, as low-skilled jobs in the service sector tend to have lower productivity and pay less
  • 9. Race between Technology and Education •Transition to the knowledge society requires an ever more skilled labor force •To have an ample supply, you would need growing investment in high quality education •In some countries (specifically the US), investment in public education has not kept pace with need, and the imbalance between supply and demand for skilled labor drives up pay for skilled labor
  • 10. Determinants of Market Income Distributions (before taxes and transfers)
  • 11. -5 -4 -3 -2 -1 0 1 2 3 4 5 6 Unemployment Union density % of children living in single mother households Industrial employment Education Spending Employment as a % of the working age population Determinants of Market Income Distribution
  • 12. Inequality=42.5 -.103 test score, R2=.64
  • 13.
  • 14. Causes of increases in market income inequality Nordic countries •Deindustrialization •Slightly declining employment from very high level •Unemployment increase highest (from lowest initial level) •Increase in children in single mother households •Countervailing factor: education spending, starts at the highest level and strongest increase at 0.3% per decade Continental Europe •Deindustrialization •Increase in children in single mother households •Increases in unemployment •Countervailing factor: increase in employment Anglo-American countries •Deindustrialization •Largest increase in children in single mother households from highest initial level •Decreasing education spending, losing “race between education and technology”
  • 15. Hypotheses on Causes of Redistribution •Size of transfers: it IS true that you can solve some problems by throwing money at them; e.g. generous unemployment benefits and child allowances or minimum income schemes •Structure of transfers determined by left/ right and Christian democratic politics •Problem pressure: at any given level of entitlements, larger problems will result in larger redistribution
  • 16.
  • 17. -4 -3 -2 -1 0 1 2 3 4 5 6 Left cabinet Unemployment replacement rates Unemployment % of children living in single mother households Employment as a % of the working age population Redistribution
  • 18. Table 6: Trends in "policy" redistribution by regimeEstimatedAverage change1985 Levelper decadeNAll countries15%-.2117Nordic24%.224Continental Europe16%-.534Southern Europe1%3.618Anglo-American countries10%.441
  • 19. Thanks for your attention!
  • 20. -1.5 -1 -0.5 0 0.5 1 1.5 2 Nonaged spending Nonaged spending Social spending Social spending ALMP spending Daycare spending Health care spending Health care spending Education spending Parental leave replacement rate Unemployment replacement rate Unemployment replacement rate Sickpay replacement rate Sickpay replacement rate Minimum pension replacement rates Standard pension replacement rates Government service employment Government service employment Redistribution Poverty Poverty Child poverty Single mother poverty Single mother poverty a. Pre 1986
  • 21. -1.5 -1 -0.5 0 0.5 1 1.5 2 Social spending Daycare spending Health care spending Education spending Parental leave replacement rate Standard pension replacement rates Government service employment Government service employment Poverty Single mother poverty b. Post 1985 Social democratic government Christian democratic government