Vertical and Horizontal Redistribution
European countries have the world's most redistributive tax and transfer systems. Although they have been well equipped to 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 socioeconomic groups. In a context where individuals may not only care about vertical redistribution, but also about the economic situation of the specific groups to which they belong, the horizontal dimension of redistribution becomes politically salient and can be a source of social tensions. This paper analyzes the performance of the 28 EU countries on redistribution across (i) age groups, (ii) occupational groups, and (iii) household types over 2007–2014 using counterfactual simulation techniques. The analysis finds a great degree of heterogeneity across countries: changes in the tax and transfer system have particularly hit the young and losers of occupational change in Eastern European countries, while households with greater economic security have benefited from these changes. The findings suggest that horizontal inequality is a dimension that policy makers should take into account when reforming tax and transfer systems.
Main Authors: | , , , , , , , |
---|---|
Format: | Working Paper biblioteca |
Language: | English |
Published: |
World Bank, Washington, DC
2018-11
|
Subjects: | INEQUALITY, INCOME DISTRIBUTION, TAXATION, TRANSFERS, INCIDENCE ANALYSIS, VERTICAL INEQUALITY, HORIZONTAL INEQUALITY, REDISTRIBUTION, |
Online Access: | http://documents.worldbank.org/curated/en/375081543509025568/Vertical-and-Horizontal-Redistribution-The-Cases-of-Western-and-Eastern-Europe https://hdl.handle.net/10986/30930 |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
id |
dig-okr-1098630930 |
---|---|
record_format |
koha |
spelling |
dig-okr-10986309302024-08-09T07:24:27Z Vertical and Horizontal Redistribution The Cases of Western and Eastern Europe Krolage, Carla Bussolo, Maurizio Makovec, Mattia Peichl, Andreas Stockli, Marc Torre, Ivan Wittneben, Christian Torre, Iván INEQUALITY INCOME DISTRIBUTION TAXATION TRANSFERS INCIDENCE ANALYSIS VERTICAL INEQUALITY HORIZONTAL INEQUALITY REDISTRIBUTION European countries have the world's most redistributive tax and transfer systems. Although they have been well equipped to 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 socioeconomic groups. In a context where individuals may not only care about vertical redistribution, but also about the economic situation of the specific groups to which they belong, the horizontal dimension of redistribution becomes politically salient and can be a source of social tensions. This paper analyzes the performance of the 28 EU countries on redistribution across (i) age groups, (ii) occupational groups, and (iii) household types over 2007–2014 using counterfactual simulation techniques. The analysis finds a great degree of heterogeneity across countries: changes in the tax and transfer system have particularly hit the young and losers of occupational change in Eastern European countries, while households with greater economic security have benefited from these changes. The findings suggest that horizontal inequality is a dimension that policy makers should take into account when reforming tax and transfer systems. 2018-12-03T22:26:17Z 2018-12-03T22:26:17Z 2018-11 Working Paper Document de travail Documento de trabajo http://documents.worldbank.org/curated/en/375081543509025568/Vertical-and-Horizontal-Redistribution-The-Cases-of-Western-and-Eastern-Europe https://hdl.handle.net/10986/30930 English Policy Research Working Paper;No. 8657 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank application/pdf text/plain World Bank, Washington, DC |
institution |
Banco Mundial |
collection |
DSpace |
country |
Estados Unidos |
countrycode |
US |
component |
Bibliográfico |
access |
En linea |
databasecode |
dig-okr |
tag |
biblioteca |
region |
America del Norte |
libraryname |
Biblioteca del Banco Mundial |
language |
English |
topic |
INEQUALITY INCOME DISTRIBUTION TAXATION TRANSFERS INCIDENCE ANALYSIS VERTICAL INEQUALITY HORIZONTAL INEQUALITY REDISTRIBUTION INEQUALITY INCOME DISTRIBUTION TAXATION TRANSFERS INCIDENCE ANALYSIS VERTICAL INEQUALITY HORIZONTAL INEQUALITY REDISTRIBUTION |
spellingShingle |
INEQUALITY INCOME DISTRIBUTION TAXATION TRANSFERS INCIDENCE ANALYSIS VERTICAL INEQUALITY HORIZONTAL INEQUALITY REDISTRIBUTION INEQUALITY INCOME DISTRIBUTION TAXATION TRANSFERS INCIDENCE ANALYSIS VERTICAL INEQUALITY HORIZONTAL INEQUALITY REDISTRIBUTION Krolage, Carla Bussolo, Maurizio Makovec, Mattia Peichl, Andreas Stockli, Marc Torre, Ivan Wittneben, Christian Torre, Iván Vertical and Horizontal Redistribution |
description |
European countries have the
world's most redistributive tax and transfer
systems. Although they have been well equipped to 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 socioeconomic groups. In a context
where individuals may not only care about vertical
redistribution, but also about the economic situation of the
specific groups to which they belong, the horizontal
dimension of redistribution becomes politically salient and
can be a source of social tensions. This paper analyzes the
performance of the 28 EU countries on redistribution across
(i) age groups, (ii) occupational groups, and (iii)
household types over 2007–2014 using counterfactual
simulation techniques. The analysis finds a great degree of
heterogeneity across countries: changes in the tax and
transfer system have particularly hit the young and losers
of occupational change in Eastern European countries, while
households with greater economic security have benefited
from these changes. The findings suggest that horizontal
inequality is a dimension that policy makers should take
into account when reforming tax and transfer systems. |
format |
Working Paper |
topic_facet |
INEQUALITY INCOME DISTRIBUTION TAXATION TRANSFERS INCIDENCE ANALYSIS VERTICAL INEQUALITY HORIZONTAL INEQUALITY REDISTRIBUTION |
author |
Krolage, Carla Bussolo, Maurizio Makovec, Mattia Peichl, Andreas Stockli, Marc Torre, Ivan Wittneben, Christian Torre, Iván |
author_facet |
Krolage, Carla Bussolo, Maurizio Makovec, Mattia Peichl, Andreas Stockli, Marc Torre, Ivan Wittneben, Christian Torre, Iván |
author_sort |
Krolage, Carla |
title |
Vertical and Horizontal Redistribution |
title_short |
Vertical and Horizontal Redistribution |
title_full |
Vertical and Horizontal Redistribution |
title_fullStr |
Vertical and Horizontal Redistribution |
title_full_unstemmed |
Vertical and Horizontal Redistribution |
title_sort |
vertical and horizontal redistribution |
publisher |
World Bank, Washington, DC |
publishDate |
2018-11 |
url |
http://documents.worldbank.org/curated/en/375081543509025568/Vertical-and-Horizontal-Redistribution-The-Cases-of-Western-and-Eastern-Europe https://hdl.handle.net/10986/30930 |
work_keys_str_mv |
AT krolagecarla verticalandhorizontalredistribution AT bussolomaurizio verticalandhorizontalredistribution AT makovecmattia verticalandhorizontalredistribution AT peichlandreas verticalandhorizontalredistribution AT stocklimarc verticalandhorizontalredistribution AT torreivan verticalandhorizontalredistribution AT wittnebenchristian verticalandhorizontalredistribution AT torreivan verticalandhorizontalredistribution AT krolagecarla thecasesofwesternandeasterneurope AT bussolomaurizio thecasesofwesternandeasterneurope AT makovecmattia thecasesofwesternandeasterneurope AT peichlandreas thecasesofwesternandeasterneurope AT stocklimarc thecasesofwesternandeasterneurope AT torreivan thecasesofwesternandeasterneurope AT wittnebenchristian thecasesofwesternandeasterneurope AT torreivan thecasesofwesternandeasterneurope |
_version_ |
1807158217376006144 |