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Author Joumard, Isabelle ♦ Pisu, Mauro ♦ Bloch, Debbie
Source OECD iLibrary
Content type Text
Publisher OECD Publishing
Language English
Subject Domain (in DDC) Social sciences ♦ Economics
Subject Keyword Economics
Abstract Taxes and transfers reduce inequality in disposable income relative to market income. The effect varies, however, across OECD countries. The redistributive impact of taxes and transfers depends on the size, mix and the progressivity of each component. Some countries with a relatively small tax and welfare system (e.g. Australia) achieve the same redistributive impact as countries characterised by much higher taxes and transfers (e.g. Germany) because they rely more on income taxes, which are more progressive than other taxes, and on means-tested cash transfers. This article provides an assessment of the redistributive effect of the main taxes and cash transfers, based on various OECD data sources, a set of policy indicators and a literature review. Using cluster analysis, it also identifies empirically four groups of countries with tax and transfer systems that share broadly similar features.
Learning Resource Type Article
Publisher Date 2013-01-04
Volume Number 2012
Issue Number 1
Page Count 34
Starting Page 37
Ending Page 70


Source: OECD iLibrary