Haan, Peter; Kemptner, Daniel; Prowse, Victoria - 2019
sets inequalities in lifetime earnings, which would otherwise translate into differences in living standards. Based on a … life-cycle model, we find that redistribution by taxes and transfers off sets 54% of the inequality in lifetime earnings … that is due to heterogeneous skill endowments. Meanwhile, taxes and transfers insure 45% of lifetime earnings risk. Taxes …