Income Redistribution Research Articles

Social Preferences and Redistributive Politics

Abstract We study the link between social preferences and a behaviorally validated measure of support for redistribution. We uncover three fundamentally distinct social preference types: predominantly selfish, inequality averse and altruistic individuals. Inequality averse and altruistic individuals display a much stronger support for redistribution, particularly if they are more affluent. Beliefs about the role of effort and luck for success play no role for selfish individuals but are highly relevant for other-regarding individuals. Finally, while inequality averse individuals display strong support for policies aimed at reducing the incomes of the rich, altruistic individuals are considerably less supportive of these policies.

The Analysis of the Necessity and Impact of Property and Inheritance Taxes in China

The purpose of this paper is to explore the necessity and possible impact of the implementation of property tax and inheritance tax in China based on the Western tax system and the existing experience and background in China. After understanding the provisions of the Western tax system, the comments of Western people, and the results of relevant experiments in China, we found that China’s existing economic structure may create a number of problems and the low level of asset mobility of a small number of high-net-worth individuals and their small contributions to social and economic consumption also require a new tax for social wealth redistribution. Property tax and inheritance tax would be the right solution to local debt and social equity problems.

Designing an Effective Minimum Wage Policy for Sustainable Development in India

The articulated objectives of the minimum wage policy in India—specifically targeting poverty alleviation, reducing income inequality, promoting gender equity, and encouraging responsible consumption—are fundamentally aligned with the broader principles of the Sustainable Development Goals (SDGs). These policy goals, if effectively implemented, have the potential to make substantial contributions toward the achievement of multiple SDGs, particularly those related to ending poverty (SDG 1), reducing inequalities (SDG 10), promoting gender equality (SDG 5), and ensuring decent work and economic growth (SDG 8). However, the complex structure of minimum wages in India poses several challenges to achieving these outcomes. Among these challenges, we specifically discuss partial coverage, low rates of minimum wage fixation and a high incidence of noncompliance. The limited coverage undermines the effectiveness of minimum wage policies as a tool for poverty reduction and income redistribution. Noncompliance not only denies workers their rightful earnings but also perpetuates cycles of poverty and inequality. It particularly affects vulnerable groups, such as women and rural workers, who are more likely to be employed in sectors with weak enforcement of wage standards. By surveying some recent empirical literature, we identify the significance of minimum wages in mitigating poverty, income inequality and promoting gender equality and decent work. Literature from India suggests that minimum wages if implemented with full compliance would reduce poverty by 7-10 percent and gender wage gap up to 18 percent. Further, we elaborate briefly on strengthening the minimum wages. Universalising the legal coverage of minimum wages is the first step towards an effective minimum wage policy. Fixing adequate levels of minimum wages and then revising them from time to time with inflation indexing is the next important step. Lastly we argue that enabling a conducive environment for firms; compliance is the most crucial. This paper is intended to stimulate further discussion and reflection on the vital role that minimum wage policies can play in advancing the SDGs in India. By linking minimum wages more explicitly to the SDGs, policymakers can develop more integrated and effective strategies to tackle poverty, reduce inequality, and promote sustainable economic growth. The goal is to ensure that minimum wages not only provide a safety net for workers but also contribute to broader social and economic development objectives.

Peran Zakat dalam Meningkatkan Kesejahteraan Ekonomi Masyarakat

Zakat is one of the main pillars of Islam, required of Muslims who possess wealth exceeding the nisab threshold. Beyond its religious obligation, zakat also serves as a strategic tool for poverty alleviation and socioeconomic enhancement. The primary objective of zakat is to purify the wealth and soul of the muzakki (zakat giver) and to assist the mustahik (zakat recipients) in meeting their basic needs. In Indonesia, with its large Muslim population, the potential for zakat is significant, yet its impact on poverty reduction remains limited. Optimal zakat management is essential to ensure targeted distribution. Zakat includes eight categories of recipients: fakir, miskin, amil, muallaf, riqab, gharim, fii sabilillah, and ibn sabil. Through a productive approach, zakat can provide business capital and training to mustahik, enhancing their economic self-sufficiency and reducing social inequality. This study employs a library research method and a qualitative approach to explore the role of zakat in improving community welfare. The findings indicate that effective zakat management, especially in the form of productive zakat, can strengthen social solidarity and promote economic empowerment. Zakat functions not only as wealth redistribution but also as a holistic empowerment tool, contributing to achieving more equitable and comprehensive societal welfare.

Coupling coordination between electricity and economy: China as an example

The benign coupling coordination between electricity (EL) and economy (EC) contributes to a better environment and sustainability. This study explores whether EL and EC can coordinate theoretically, how to evaluate their coordination, what the statuses are, and how to enhance coupling coordination levels (CCL). Specifically, we select the data from 2011 to 2020 of the 31 provincial regions of China, use information entropy weight and the technique for order preference by similarity to an ideal solution method, establish the theoretical coupling coordination mechanism and the evaluation index system to measure CCL temporally-spatially and propose policy implications based on prediction tendencies. We find that most regions' CCLs fluctuate temporally with mild upward trends, indicating the much more benign coupling coordination status; the spatial distributions are uneven with narrowing gaps. However, future CCL gaps may increase; therefore, differentiated policy implications are needed, such as encouraging balanced-coordination policies, innovating for higher-quality coordination, and cooperating for intelligence and wealth transfer. This study is conducive to theoretically describing the coupling coordination mechanism between EL and EC, providing new insights for CCL evaluation and the coordination practice for different regions.

Decarbonization and social justice: The case for artisanal and small-scale mining

Artisanal and small-scale mining (ASM) is the primary livelihood for an estimated 40 million people in 80 countries and supports an additional 130 to 270 million people in mining communities. With the emergence of critical minerals necessary for decarbonization efforts, ASM has emerged as a crucial form of production to help meet global demand. Despite its importance, ASM miners and communities are routinely ostracized and pathologized. Rather than the cause of social deprivation, this article argues that ASM reflects broader social, political, and historical inequalities. We contend with four main arguments against ASM before elaborating on three reasons that ASM ought to be responsibly supported. These reasons are ASM's ability to enable economic redistribution, meet increased global demand for critical minerals, and advance social justice. Inclusive regulation and governance rather than exclusion and plausible deniability constitute the pathway to addressing attendant social and environmental challenges associated with ASM practices. This paper identifies pathways to inclusive regulation of ASM and proposes avenues for future research and interventions. Ultimately, ASM must be understood as a central social justice issue of our time, especially in the context of global decarbonization efforts.

How the radical right reshapes public opinion: the Sweden Democrats’ local mobilisation, 2002–2020

This study enhances our understanding of the long-term impact of radical right parties (RRPs) on public opinion by examining the local mobilisation of the Sweden Democrats (SD) over the past two decades. Drawing on extensive local-level data from Sweden’s 290 municipalities (2002–2020), merged with survey data, the study reveals that the gradual establishment of RRPs in local politics alters voters’ policy preferences, increasing the salience of immigration. The study further shows that the SD’s local presence reshapes societal divides, leading individuals to increasingly sort their ideological views according to their positions on immigration, while reducing the prominence of economic redistribution issues. Consequently, public attention shifts away from traditional economic-redistributive conflicts towards immigration-related concerns. These findings have significant implications, suggesting that the local establishment of RRPs reconfigures public perceptions of political conflict from the grassroots level, independent of demographic trends, external crises, and even RRPs’ national leadership.

Analyzing India's National Civil Aviation Policy and Global Trends in Contemporary Civil Aviation Policies

The expansion of the Indian economy is expected to extend to remote regions, and while market-driven processes are ideal for regional air connectivity, there is recognition of the valuable role of public policy in this endeavor. The UDAN Scheme follows a market-oriented approach where operators assess demand, propose routes, and navigate variables like traffic rights, slot allocation, regulatory restrictions, and infrastructure limitations. Global airline industry deregulation has introduced healthy competition, enhancing efficiency and service quality, leading to increased passenger traffic. Studies have highlighted the constructive impact of improved air connectivity on the economic development of regions. Efficient airports are vital economic catalysts, but research suggests that some regional airports operate inefficiently, missing opportunities for profitability. Government subsidies and policies for enhancing regional and remote air connectivity are common practices worldwide, with schemes like EAS in the United State and PSO in Europe bridging the accessibility gap. Research is crucial to understand policy effects on air connectivity and identify factors that improve outcomes. Route dispersal guidelines, such as those in India, can create financial redistribution between route categories, affecting airlines' profitability and serving state capitals over remote regions. Policymakers must find effective ways to enhance air transport to underserved areas where market dynamics might not naturally establish viable transportation links. In summary, this study emphasizes the importance of government-supported policies like UDAN and the role of market-oriented approaches in promoting regional air connectivity. It underlines the need for research to assess policy impacts and identifies the challenges and opportunities in enhancing air connectivity to remote and underserved regions.

Legal experts colluding with the political and economic elites in justifying corruption: the case of Malaysia’s Madani goverment

This paper examines the increasing centralization of power by the current ‘reformist’ Malaysian government through the co-optation of civil society organizations (CSOs) to bolster the moral legitimacy of the integral state. We argue that Anwar Ibrahim’s transition from a unifying figure in oppositional politics to his current role has inadvertently led to the muting of civil society actors (CSAs) and CSOs. This co-optation has significantly diminished the autonomy and influence of civil society in Malaysia’s political landscape. A comparative analysis of the socio-economic strategies employed by Anwar and his predecessor, Najib Razak, reveals that Anwar’s efforts towards wealth redistribution and empowerment of marginalized communities have been limited. This policy approach has disproportionately affected rural constituencies, potentially altering the dynamics of political support. Furthermore, the current administration under Anwar faces criticism for failing to fulfill its campaign promise of holding corrupt politicians accountable. This situation is exacerbated by the involvement of two prominent lawyers representing politicians across party lines, raising questions about conflicts of interest and the integrity of the judicial process. Drawing on Gramscian theory, this paper posits that legal professionals should be incorporated into the concept of the ‘integral state’ due to their capacity to interpret, manipulate, and shape laws in ways that often benefit the ruling elite. This theoretical expansion provides a more comprehensive framework for understanding the mechanisms of power consolidation in contemporary Malaysian politics.

Delayed retirement, pension insurance and income inequality

PurposeTo investigate the potential of raising the retirement age and reforming pension insurance in mitigating intra- and inter-generational income inequality, thereby offering empirical support for governmental policy formulation.Design/methodology/approachA dynamic general equilibrium model with intertemporal iteration is developed to comprehensively assess the impact of policies raising the retirement age on income inequality, taking into account delayed retirement, survival probability, and pension insurance. The theoretical hypotheses are validated through simulation using MATLAB.FindingsThrough theoretical analysis, it is determined that, given certain assumptions are satisfied, raising the retirement age can effectively mitigate intra-generational income inequality, inter-generational income inequality under both the pay-as-you-go and fund accumulation systems. Simulation results indicate that, under current parameter settings, raising the retirement age can reduce the Gini coefficient. Furthermore, this study reveals that regardless of the pay-as-you-go or fund accumulation system, pension insurance serves as a mechanism for income redistribution and alleviating income inequality.Originality/valueIt offers a theoretical foundation for the government's policy on delayed retirement and endowment insurance.

Individualism, innovation, and inequality: Exploring the nexus

We provide an alternative explanation for the direction of technological change and the related wage inequality between skilled and unskilled workers. To this end, we formulate a skill-biased technological change model in which households’ decisions on consumption, savings, and human-capital accumulation are influenced by the level of individualism. We conclude that more individualistic cultures experience higher technological-knowledge bias toward skilled technologies, larger output growth rates, and higher wage inequality between skilled and unskilled workers. We also find that union bargaining only reduces wage inequality between skilled and unskilled at moderate levels of individualism, while introducing redistributive income taxes does not necessarily reduce income inequality.

Public Debt and the Political Economy of Reforms

How do electoral incentives influence the choice to experiment with a policy reform that generates uncertain future benefits? To answer this question, we examine a two-period model of redistributive politics with uncertain policy outcomes involving a mixture of private and public benefits. In equilibrium, we find that the intertemporal trade-off between current policy costs and future benefits creates an incentive for politicians to use public debt to smooth spending across periods. The higher the share of policy benefits that are in the form of a public good, the higher the level of available debt-related spending on targeted policies that is necessary. (JEL D63, D72, E23, H41, H63)

Information on income concentration and redistribution preferences: The case of the top 1% in the United States

In recent decades, income inequality has soared in the United States, but few studies utilize experimental methodologies to assess whether having reliable information on income concentration affects the formation of redistribution attitudes. We advance this emerging literature through an analysis of information on the income owned by the top 1% of the income distribution – a group that is socio-politically meaningful and axial to the recent rise of inequality. The empirical evidence draws on a novel split-sample survey experiment ( N = 4,000). The results indicate that having the real value of income concentration does not have an average, significant effect on redistribution attitudes. Neither does it moderate the positive association between prior perceptions of concentration and these attitudes. However, the analysis suggests that intense cognitive effort is related to preference revision. This is because, information reduces pro-redistribution attitudes among extreme overestimators who process the information more intensely.

Wealth-related inequalities in self-reported health status in the United States and 14 high-income countries.

To examine wealth-related inequalities in self-reported health status among older population in the United States and 14 European countries. We used secondary individual-level data from Health and Retirement Survey (HRS) and the Survey of Health, Ageing, and Retirement in Europe (SHARE) in 2011 and 2019. In this cross-sectional study, we used two waves from HRS (wave 10 and 14) and SHARE (wave 4 and 8) to compare wealth-related health inequality across countries, age groups, and birth cohorts. We estimated Wagstaff concentration indices to measure these inequalities across three age groups (50-59, 60-69, 70-79) and two birth cohorts (1942-1947, 1948-1953) in the US and 14 European countries. We performed secondary analysis of survey data. Focusing on older population, we found evidence of wealth-related inequalities in self-reported health status across several high-income countries, with the US demonstrating higher levels of inequality than its European counterparts. The magnitude of these inequalities with respect to wealth remained unchanged over the study period across all countries. Our findings also suggest that wealth-related health inequalities differ at different stages of workforce engagement, especially in the United States. This could be explained either by potential redistributive effects of retirement or by uneven survivor effect, as less wealthy may drop out of the observations at a greater rate partly due to their poorer health. Wealth-related inequalities in self-reported health status are strong and persistent across countries. Our results suggest that there is meaningful variation across high-income countries in health-wealth dynamics that merits further investigation to better understand whether certain health or welfare systems are more equitable. They also highlight the need to consider social policy and wealth redistribution mechanisms as strategies for improving population health among the less wealthy, in the United States and elsewhere.

Тенденции распределения доходов между трудом и капиталом в странах с высокой долей труда в ВВП

The work provides quantitative estimates of trends in the distribution of income between labor and capital in countries in which the share of labor in GDP exceeds the average level. The work used UN data for a set of European countries, postSoviet countries, the USA, Canada and Israel. To assess trends, linear econometric models were built depending on the share of the labor force in the GFP for the period 2012–2021. The highest level of labor share was observed in Belgium, Iceland, the Netherlands and Switzerland. The study found that Belgium, Bosnia and Herzegovina, Denmark, Spain, the Netherlands, Portugal, Finland and France have seen a decline in labor’s share of GDP. In the Netherlands and Portugal this trend is weak. Germany, Greece, Iceland, Luxembourg, the Czech Republic, Switzerland and Estonia have seen an increase in the labor share of GDP. In Germany and Switzerland this trend is weakly expressed. There are no significant trends in the redistribution of income between labor and capital in countries such as Austria, Armenia, Italy, Canada, Slovenia, the United Kingdom, the United States of America, Croatia and Sweden. Trends in the redistribution of income between labor and capital can be determined by institutional conditions in the country’s economy.

Can Property Taxation Fix China’s Housing Market?: A Regression Discontinuity Analysis

How does the housing market respond to a newly imposed value-based property tax? Based on individual property transaction data spanning seven years, we investigate the repercussions of a new property tax on the local housing market in Chongqing, China. In particular, we adopt a fuzzy regression discontinuity approach to examine the impact of the tax policy on house prices, transaction volumes, and the broader social welfare. We find that the property tax in Chongqing has not caused a reduction in house prices, but it has made a non-trivial contribution to local public finance for public housing programs. Our findings suggest that the property-tax-capitalization hypothesis is not supported in Chongqing’s context, although the tax improves wealth redistribution.

Governance and subjective well-being in the Countries of the Andean Community (CAN)

This study presents an analysis of the relationship between governance and subjective well-being in the Andean Community of Nations. The analyzed data is sourced from the World Values Survey of Wave 7. A quantitative approach was employed to investigate perceptions and political attitudes in the region. It highlights a positive, albeit slight, connection between subjective well-being and governmental trust, along with the positive influence of perception on wealth redistribution in well-being. Despite receiving subsidies, the unemployed consistently exhibit lower satisfaction levels. Significant associations were identified between governmental trust and opinions on wealth redistribution and surveillance. Additionally, political interest is positively correlated with the preference for men to excel in politics, indicating disparities in attitudes toward gender equality. These findings underscore the complex interaction between governance, well-being, and political perceptions in the Andean region.

Optimalisasi Dana Zakat Untuk Mengatasi Masalah Kemiskinan di Indonesia

The purpose of this research is to unravel how zakat can be a solution to solve the problem of poverty in Indonesia. In this study, a qualitative approach is used with library research. The result of this article is that the potential of zakat is a solution to answer the problem of poverty in Indonesia, due to the large number of Islamic populations. The role of zakat in alleviating poverty is wealth redistribution, economic empowerment, access to health and education, assistance for vulnerable groups, overcoming humanitarian crises, and improving living standards.

The Swedish business elite and the gift explosion of 1947

ABSTRACT In 1948, the social democratic government of Sweden imposed new wealth transfer taxes including an estate tax. Events have been characterised as the definite breakdown of the co-operation between social democracy and organised business. This article attacks the topic from the perspective of the reproduction of the business elite through the inheritance and the gift. The tax reform triggered an epidemic of generosity. In 1947, gift tax revenue was 20 times higher than the annual averages before and after. We have studied the individual actors of the Swedish business elite as donors and concluded that 76 couples of the business elite transferred 25.2 msek to above all their children. The joint political campaign of organised business against the reform raised 24.8 msek. The result complicates and questions previous assumptions concerning the motives of the business elite for protesting against the tax reform.

Women's welfare attitudes in South Korea

AbstractMany scholars argue that gender affects welfare attitudes: women support welfare policies more than men in most welfare societies. However, in South Korea, women tend to oppose welfare policies or show no gender gap in welfare attitudes. As welfare programs in South Korea are expanding, I investigate whether women's attitudes towards welfare policies have changed and if they differ based on self‐interest. I analysed welfare attitude data from the Korea Welfare Panel Study (KoWePS) for 2013 and 2022 using ordered logistic regression models, finding that women in South Korea supported almost all welfare policies less than men. However, in terms of income redistribution and free preschool and childcare service provision, there were no gender differences observed. Furthermore, cleavages among women were found regarding attitudes towards support for the unemployed and free preschool and childcare service provision based on self‐interest. Additionally, progressive women exhibited more supportive attitudes across all domains of welfare.