Why Is Europe more equal than the United States? Thomas Blanchet, Lucas Chancel and Amory Gethin
By: Blanchet, Thomas
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Contributor(s): Chancel, Lucas | Gethin, Amory.
Material type: 
ArticleSubject(s): DESIGUALDAD | INGRESOS FISCALES | IMPUESTOS | MACROECONOMIA | TRANSFERENCIAS | ECONOMÍA COMPARADA | EUROPA | ESTADOS UNIDOS
In:
American Economic Journal : Applied Economics v. 14, n. 4, October 2022, p. 480-518Summary: This article combines all available data to produce pretax and posttax income inequality series in 26 European countries from 1980 to 2017. Our estimates are consistent with macroeconomic growth and comparable with US distributional national accounts. Inequality grew in nearly all European countries, but much less than in the US. Contrary to a widespread view, we demonstrate that Europe's lower inequality levels cannot be explained by more equalizing tax and transfer systems. After accounting for indirect taxes and in-kind transfers, the US redistributes a greater share of national income to low-income groups than any European country. "Predistribution," not "redistribution," explains why Europe is less unequal than the United States.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 2134/2022/4-2 (Browse shelf) | Available | OP 2134/2022/4-2 |
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Bibliografía
This article combines all available data to produce pretax and posttax income inequality series in 26 European countries from 1980 to 2017. Our estimates are consistent with macroeconomic growth and comparable with US distributional national accounts. Inequality grew in nearly all European countries, but much less than in the US. Contrary to a widespread view, we demonstrate that Europe's lower inequality levels cannot be explained by more equalizing tax and transfer systems. After accounting for indirect taxes and in-kind transfers, the US redistributes a greater share of national income to low-income groups than any European country. "Predistribution," not "redistribution," explains why Europe is less unequal than the United States.
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