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 …

life-cycle model, we find that redistribution by taxes and transfers off sets 54% of the inequality in lifetime earnings …

Over the last decades, income inequality has increased globally. How do social policies affect this increasing trend …? How do international trade and technological progress affect inequality? What is the profile of income inequality in China …? Based on quantitative analyses of determinants of income inequality, this study provides a number of new insights into these …