Abstract

The purpose of this study is to determine the impact of income redistribution policy, which is a government intervention to alleviate income inequality. To achieve the purpose of this study, data provided by various organizations such as OECD, World Bank, and WID were collected to form panel data consisting of 17 years of 33 countries.
 The results of confirming the relationship between income redistribution policy and income inequality through the differential moment method of the dynamic panel model using the relevant data are as follows. First, cash benefit spending was found to reduce income inequality. Second, the interaction between direct and indirect taxes and cash benefit spending was found to reduce income inequality, but was not statistically significant. Third, the interaction between direct taxes and in-kind benefit spending was found to deepen income inequality.
 Based on these key analysis results, we proposed improvements to existing social security policies, proposals for new social security policies, and directions for income redistribution policies that take into account the relationship between social security policies and tax policies in order to alleviate income inequality in the future.

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