In this paper, we study how the tax-and-transfer system reduces the inequality of lifetime income by redistributing … lifetime earnings risk. Based on a dynamic life-cycle model, we find that redistribution through the tax-and-transfer system … offsets around half of the inequality in lifetime earnings that is due to differences in skill endowments. At the same time …

In this paper, we study how the tax-and-transfer system reduces the inequality of lifetime income by redistributing … lifetime earnings risk. Based on a dynamic life-cycle model, we find that redistribution through the tax-and -transfer system … offsets around half of the inequality in lifetime earnings that is due to differences in skill endowments. At the same time …

Expansion of the public sector and redistributive policies may reduce income inequality, but formal tests suffer from … income inequality and government size, measured as the government expenditure share in GDP. Using a novel instrument - the … the true role of the government in attenuating income inequality. The estimated relationship between income inequality and …

deal with vertical inequality - that is, fostering redistribution from the rich to the poor - less is known about their … performance in dealing with horizontal inequality, that is, in redistributing among socio-economic groups. In a context where … individuals may not only care about vertical redistribution, but also about the economic situation of the specific groups they …

The relationship between inequality and redistribution is usually studied under the assumption that the government … expenditure). We show that inequality may have no discernible effect on the size of redistributive programs. …

blocks of lifetime disparities. We look at lifetime inequality and the redistribution properties of taxes and benefits using …In this paper we look at lifetime inequality to address two main questions: How well does a modern tax system, based on … annual information, target lifetime inequality? What aspects of the tranfser system are most progressive from a lifetime …

claimed that "the more we target benefits at the poor, the less likely we are to reduce poverty and inequality". The basic … fact become a very weak one. For what it matters, targeting tends to be associated with higher levels of redistribution …

inequality, and polarization in policy preferences. The main innovation lays in the political process determining capital … speaking reflecting inequality) has somewhat interesting effects along the transitional path towards balanced growth. Hereby …