Intra-household income inequality and preferences for redistribution

This chapter describes how inequality and real incomes have evolved in Germany through the period from the 1980s, through reunification, up to the economic Crisis and its aftermath. It brings out how reunification was associated with a prolonged stagnation in real wages. It emphasizes how the distinctive German structures for wage bargaining were eroded over time, and the labour market and tax/transfer reforms of the late 1990s-early/mid-2000s led to increasing dualization in the labour market. The consequence was a marked increase in household income inequality, which went together with wage stagnation for much of the 1990s and subsequently. Coordination between government, employers, and unions still sufficed to avoid the impact the economic Crisis had on unemployment elsewhere, but the German social model has been altered fundamentally over the period

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France

10.1093/oso/9780198807032.003.0006 ◽

2018 ◽

Author(s):

Philippe Askenazy ◽

Bruno Palier

Keyword(s):

Income Inequality ◽

Labour Market ◽

Rapid Growth ◽

Household Income ◽

General Trend ◽

Age Groups ◽

Wage Growth ◽

The Elderly ◽

Wage Setting ◽

Rich Countries

This chapter describes France as apparently one of the few rich countries to have avoided a significant increase in income inequality in recent decades. However, stable average inequalities mask an asymmetric trend of income between age groups, the elderly improving their situation while the young see theirs worsening. Furthermore, it shows that behind this relatively still surface, a general trend of precarization of more and more ordinary workers is occurring. The importance of wage-setting processes and of regulation of the labour market is brought out, together with the way the tax and transfer systems have operated, in restraining the forces driving inequality upwards. Wage growth, while limited, has thus been reasonably uniform across the distribution and together with the redistributive system have kept household income inequality within bounds. However, in response to high unemployment both regulatory and tax–transfer systems have served to underpin the very rapid growth in precarious working over the last decade, representing a very serious challenge for policy.

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Changes in Income Distribution in Brazil

10.1093/oxfordhb/9780190499983.013.24 ◽

2018 ◽

Author(s):

Rodolfo Hoffmann

Keyword(s):

Income Inequality ◽

Household Income ◽

Gini Index ◽

Military Coup ◽

Transfer Programs ◽

Per Capita ◽

The Government ◽

The Military ◽

The Impact ◽

Very High

Income inequality in Brazil, already high, increased after the military coup of 1964 and remained very high even after democratization in the 1980s. It decreased substantially in the period 2001–2014, after inflation was controlled. The Gini index of the per capita household income dropped from 0.594 in 2001 to 0.513 in 2014. The determinants of this decline in inequality are analyzed considering the components of that income and how each one affected changes in inequality, showing the impact of changes in the remuneration of private sector employees and in pensions paid by the government, as well as federal transfer programs. Changes in education lie behind the first of these effects, and the increase of the minimum wage reinforced all three. The economic crises after 2014 interrupted the process of decline, and among economically active persons, inequality even increased from 2014 to 2015. Measures to further reduce inequality are suggested.

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Educational Assortative Mating and Household Income Inequality

Journal of Political Economy ◽

10.1086/702018 ◽

2019 ◽

Vol 127 (6) ◽

pp. 2795-2835 ◽

Cited By ~ 18

Author(s):

Lasse Eika ◽

Magne Mogstad ◽

Basit Zafar

Keyword(s):

Income Inequality ◽

Assortative Mating ◽

Household Income ◽

Educational Assortative Mating

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Male Income, Female Income, and Household Income Inequality in Israel: A Decomposition Analysis

Journal of Income Distribution ◽

10.25071/1874-6322.23679 ◽

2009 ◽

pp. 34

Author(s):

Ayal Kimhi

Keyword(s):

Income Inequality ◽

Gender Equality ◽

Ethnic Minorities ◽

Household Income ◽

Decomposition Analysis ◽

Female Education ◽

Total Income ◽

Good For ◽

Income Variability ◽

Positive Effect

Differentiating between the sensitivity of income inequality to male income and female income and decomposing inequality by income determinants, we find that total income inequality is less sensitive to female income variability or the level of female income, than to male income variability or the level of male income. Uniform increases in education reduce income inequality, with increases in female education having a larger effect than increases in male education. An increase in the population fraction of ethnic minorities has a positive effect on inequality, but this operates mostly through female income. All this suggests that female income is the most adequate target for inequality-reducing policy, and that within-household gender equality is good for reducing income inequality among households.

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Assortative Mating, Income Inequality, and Place

10.26686/wgtn.17019644 ◽

2021 ◽

Author(s):

◽

Avril Macfarlane

Keyword(s):

Income Inequality ◽

Assortative Mating ◽

Household Income ◽

European Social Survey ◽

Highly Educated ◽

Wide Range ◽

Negative Effect ◽

Educational Assortative Mating ◽

Highly Correlated ◽

The Relationship

<p>There is a growing concern internationally about levels of income inequality, and the negative effect this has on the functioning of societies both in terms of productivity and social harmony. An unexpected contributor to inequality is assortative mating - the phenomenon of “like marrying like”. Educational attainment is highly correlated with income; when two highly educated people partner and form a household they are more likely to appear at the top of the household income distribution, while couples with only primary or incomplete secondary education appear at the bottom. Therefore the greater the propensity to mate assortatively the more unequal the distribution of household income becomes. I ask two questions of the relationship between educational assortative mating and household income inequality. Firstly, how do countries (in Europe) differ in their degree of educational assortative mating? Secondly, what is the evidence that such differences are reflected in indicators of household income inequality? My study differs from the prevailing approaches to this question by taking a geographical approach. Instead of comparing a single country over time and monitoring the correspondence between assortative mating and income inequality, I compare a wide range of countries, using a uniform instrument, at one point in time. In order to do so I draw on the unit records of 29 countries from the European Social Survey administered in 2012. From these unit record data I have been able to identify two important patterns. Firstly, there is a clear presence of educational assortative mating in each country. However, the degree differs and it does so primarily as a reflection of the overall level of education in the country. Rising levels of education lower the returns for education, in turn making assortative mating comparatively less attractive. As a result, the level of assortative mating, compared to what would be expected under random conditions, is lower in highly educated nations. The lowered level of assortative mating in highly educated nations reduces the barriers to social mobility through marriage for those without university educations. Consequently, household income inequality is seen to be intrinsically related to assortative mating, although the outcomes can be mitigated by redistribution policies.</p>

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Assortative Mating, Income Inequality, and Place

10.26686/wgtn.17019644.v1 ◽

2021 ◽

Author(s):

◽

Avril Macfarlane

Keyword(s):

Income Inequality ◽

Assortative Mating ◽

Household Income ◽

European Social Survey ◽

Highly Educated ◽

Wide Range ◽

Negative Effect ◽

Educational Assortative Mating ◽

Highly Correlated ◽

The Relationship

<p>There is a growing concern internationally about levels of income inequality, and the negative effect this has on the functioning of societies both in terms of productivity and social harmony. An unexpected contributor to inequality is assortative mating - the phenomenon of “like marrying like”. Educational attainment is highly correlated with income; when two highly educated people partner and form a household they are more likely to appear at the top of the household income distribution, while couples with only primary or incomplete secondary education appear at the bottom. Therefore the greater the propensity to mate assortatively the more unequal the distribution of household income becomes. I ask two questions of the relationship between educational assortative mating and household income inequality. Firstly, how do countries (in Europe) differ in their degree of educational assortative mating? Secondly, what is the evidence that such differences are reflected in indicators of household income inequality? My study differs from the prevailing approaches to this question by taking a geographical approach. Instead of comparing a single country over time and monitoring the correspondence between assortative mating and income inequality, I compare a wide range of countries, using a uniform instrument, at one point in time. In order to do so I draw on the unit records of 29 countries from the European Social Survey administered in 2012. From these unit record data I have been able to identify two important patterns. Firstly, there is a clear presence of educational assortative mating in each country. However, the degree differs and it does so primarily as a reflection of the overall level of education in the country. Rising levels of education lower the returns for education, in turn making assortative mating comparatively less attractive. As a result, the level of assortative mating, compared to what would be expected under random conditions, is lower in highly educated nations. The lowered level of assortative mating in highly educated nations reduces the barriers to social mobility through marriage for those without university educations. Consequently, household income inequality is seen to be intrinsically related to assortative mating, although the outcomes can be mitigated by redistribution policies.</p>

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INEQUALITY OF HOUSEHOLD INCOME IN INVOLUNTARY RESETTLEMENT AT KOTO PANJANG

JEBI (Jurnal Ekonomi dan Bisnis Islam) ◽

10.15548/jebi.v4i2.242 ◽

2019 ◽

Vol 4 (2) ◽

pp. 157

Author(s):

UTRI SAFRI YETMI ◽

FERY ANDRIANUS ◽

ZULKIFLI N

Keyword(s):

Income Inequality ◽

Household Income ◽

Analytical Tool ◽

Primary Data ◽

Dam Construction ◽

Involuntary Resettlement ◽

New Location

This research examined inequality of household income transferred due to the construction involuntary resettlement of the Koto Panjang dam in Kampar District, Riau Province. Dam construction caused the displaced of the households in the location. The households received compensation in the form of buildings and land. Even though the displaced household received the same compensation but some households had better lives while others were worse. This condition showed the inequality of household income in the new location. This study used primary data that obtained through questionnaires in 3 sub-districts of 10 villages. The analytical tool used to see the income inequality was the Gini ratio. This study found that the inequality of household income transferred in Koto Panjang was moderate. This showed that the households that have been moved due to the construction of the Koto Panjang Dam have been quite good compared to before.

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