Redistributive Policies Research Articles

Beyond the resource curse: The redistributive challenge of sustainable resource-led development in Australia, Chile and Zambia

We outline the redistributive challenge (Eggert, 2001) associated with resource-led development posed by entrenched spatial divisions of labour (SDL) and absent or weakly aligned fiscal, industry and regional policies that undermine processes of strategic coupling in mining global production networks (GPNs). We illustrate this redistributive challenge of resource-led development with respect to copper mining communities in Australia, Chile and Zambia drawing lightly upon extant literature and secondary data. In conclusion we note how the framing and effects of redistributive policies might be better incorporated into economic geographical theory and the need for policy experimentation with regard to the redistributive challenge of resource led development.

The effects of asset prices on income inequality: Redistribution policy does matter

Income inequality in some developed countries has been steadily increasing over the past two decades, contrasting Kuznets' hypothesis that income inequality will improve after a certain income level. During that same period, asset prices rose significantly, blamed for increases in inequality. Are rising asset prices really the cause of rising inequality? Using the data of 32 developed countries across 1980–2018, this research empirically reveals that a country's stance toward redistribution significantly determines whether asset prices affect income inequality. The results indicate that an increase in house prices significantly increases income inequality in countries with weak income redistribution policies, while asset prices do not affect income distribution in countries with strong redistribution policies. An improvement in income inequality does not occur spontaneously but requires active government intervention.

Inequality, social protection policy, and inclusion: pertinent theories and empirical evidence

The available literature shows that there is a questionable direction of correlation between income inequality, redistribution policies, and economic prosperity. Meanwhile, there is also a striking claim that rising economic inequality is an immense concern. This paper, therefore, aims to summarize the antagonistic thoughts. Moreover, it presents a conceptual model and empirically measures the nexus of income inequality and social protection policy with inclusive development. The fixed effects regression of the panel dataset from 34 African countries reveals that income inequality is a negative driver but social redistribution policies are positive drivers of inclusive development in the long run. The control variables such as inflation, population growth rate, and carbon dioxide emissions stand against inclusion. However, the labour force participation rate, freedom score, life expectancy at birth, enrolment rate in secondary school and share of employment in industry show a positive correlation with inclusion.

Consumption inequality and poverty in Greece: Evidence and lessons from a decade-long crisis

The paper assesses evolutions in consumption inequality and poverty in Greece from the onset of the economic crisis in 2009 until the completion of the last structural adjustment programme in 2019, being the first to analyse distributional developments under the SYRIZA-led government as contrasted to the period that led to its electoral rise. Using microsimulation analysis on several waves of Household Budget Survey data, this study finds that the left-led government elected in 2015 reversed trends of steeply escalating inequality and poverty of the 2009–2014 period. By adopting policies with clearly Rawlsian characteristics, primarily the least well-off and partly the middle class gained some lost ground. However, distributional changes were mostly marginal, when compared to the massive adverse developments of the 2009–2014 period. At the same time, the disequalising effect of indirect taxation became stronger as further tax hikes were employed to achieve fiscal consolidation targets. Our results suggest that even well-targeted redistributive policies, unless sufficiently generous, have limited capacity to actually lift people out of poverty and multilevel policies affecting the distribution of market incomes are necessary. If the NextGenerationEU recovery plan is set to achieve inclusive growth, this an important lesson for policy makers.

Do economic inequalities impact demographic dividend: Evidence from India

The paper offers a new explanation and prediction of empirical relationship between income and consumption inequalities and demographic dividend. The framework for the analysis is a modified National Transfer Accounts (NTA)-based modelling of the first demographic dividend with inequality-adjusted or inequality-discounted economic support ratio (ESR). The model is tested for India by calculating the inequality-adjusted demographic dividend (or the growth rate of ESR) for the period 2005-2050. The results show that income inequality is not higher than consumption one for all ages and these age-specific economic inequalities have remarkable effects on (i) lowering the observed age-specific distribution of labour income for select ages and consumption for all ages and (ii) reducing the size and duration of demographic dividend due to lower growth rate of ESR. In addition, income inequality effects are found to be stronger than consumption inequality effects in terms of reducing the size of demographic dividend. These results imply that (a) growth effects of the first demographic dividend are upward-biased if unadjusted for the economic inequalities; (b) attainment of goals and targets of the reduction in inequalities under UN-SDGs 2030 by redistributive economic policies are contributory to the maximization of economic growth through the first demographic dividend; and (c) economic inequalities do impact the size and duration of demographic dividend. Subject to the availability of data, the modified approach to the first demographic dividend calculation in this paper is of relevance for comparative studies between India and other countries to draw lessons from mutual experiences and to establish the generality of results.

The Effect of Performance Information on Actual Budgeting Allocation: The Role of Policy Type

The purpose of this study is to examine how performance information changes actual budget allocation in both government proposals and congressional appropriations. Focusing on the effects of performance information on budget changes by subsection and policy type, the analysis reveals significantly positive relationships between performance information and budget changes. The analysis also shows significantly positive correlations between the planning and management sectors and budget changes. We also examine the effects of performance information on budget changes by policy type. Meanwhile, the results indicate that performance information had significant positive relationships with the budget allocations for distributive and redistributive policies.

Experience of economic hardship and right-wing political orientation hinder climate concern among European young people

ABSTRACT While there is extensive literature about public concern about climate change, most studies rely on cross-sectional static data. Based on a unique panel survey conducted in nine European countries in 2018 and 2019, we make a rare investigation of factors that explain why some young people (age: 18–34 years) are, have become or have lost their concern about climate and environmental issues at times of widespread discussions about the climate emergency. The analysis tests argument about the importance of individual-level factors such as values and political orientations and consider the role of cross-national variations, the experience of extreme weather events and youth-led climate strikes. Our results support prior studies as we find that young people with libertarian rather than authoritarian values, with more positive views towards immigration and redistribution policies, tend to be more concerned about climate change and the environment. We find little effect of contextual factors. Young people who have experienced economic hardship and have a right-wing political orientation are less likely to become concerned for climate and environmental issues. Socio-economic conditions, values and political orientations are crucial to understanding climate concern among young Europeans, affecting youth climate engagement at times of increasing inequalities and polarization.

Modeling Years of Life Lost Due to COVID-19, Socioeconomic Status, and Nonpharmaceutical Interventions: Development of a Prediction Model.

BackgroundResearch in the COVID-19 pandemic focused on the health burden, thereby largely neglecting the potential harm to life from welfare losses.ObjectiveThis paper develops a model that compares the years of life lost (YLL) due to COVID-19 and the potential YLL due to the socioeconomic consequences of its containment.MethodsIt improves on existing estimates by conceptually disentangling YLL due to COVID-19 and socioeconomic status. By reconciling the normative life table approach with socioeconomic differences in life expectancy, it accounts for the fact that people with low socioeconomic status are hit particularly hard by the pandemic. The model also draws on estimates of socioeconomic differences in life expectancy to ascertain potential YLL due to income loss, school closures, and extreme poverty.ResultsTentative results suggest that if only one-tenth of the current socioeconomic damage becomes permanent in the future, it may carry a higher YLL burden than COVID-19 in the more likely pandemic scenarios. The model further suggests that the socioeconomic harm outweighs the disease burden due to COVID-19 more quickly in poorer and more unequal societies. Most urgently, the substantial increase in extreme poverty needs immediate attention. Avoiding a relatively minor number of 4 million unemployed, 1 million extremely poor, and 2 million students with a higher learning loss may save a similar amount of life years as saving 1 million people from dying from COVID-19.ConclusionsPrimarily, the results illustrate the urgent need for redistributive policy interventions and global solidarity. In addition, the potentially high YLL burden from income and learning losses raises the burden of proof for the efficacy and necessity of school and business closures in the containment of the pandemic, especially where social safety nets are underdeveloped.

Effect of Broadband Infrastructure on Rural Household CO2 Emissions in China: A Quasi-Natural Experiment of a “Broadband Village”

This paper explores how broadband infrastructure affects rural household carbon dioxide emissions (HCE). Based on the Environmental Kuznets curve hypothesis, a quasi-natural experiment of a “Broadband Village” (B&V) in China is conducted. Panel data from 9,790 rural households were collected as part of the China Family Finance Survey (CHFS). The consumer lifestyle approach was used to calculate HCE and a Difference-in-Differences (DID) model was used to analyze the impact of a B and V pilot project on rural HCE. The results of DID model showed that B and V significantly increases rural HCE, with an influencing coefficient 1.7. Subsequently, Threshold Model was utilized to examine the nonlinear relationship between household broadband penetration and rural HCE. The results revealed the threshold effect between rural household broadband penetration and rural HCE. Namely, the growth effect of B and V to rural HCE would be much weaker, if rural household broadband penetration goes above a threshold level, 31.32%. Our analysis provides important insights for policymakers to formulate digital village and income redistribution policies to support rural carbon dioxide (CO2) emissions reductions.

Left Behind: Labor Unions and Redistributive Policy under the Brazilian Workers' Party

How do leftist governments negotiate the trade-off between courting union support and maintaining the business sector's trust? Scholars have argued that leftist parties will remain accountable to their labor base when powerful unions have strong ties to centralized leftist parties. However, I argue that strong party-union ties and party leadership centralization may, in fact, insulate leftist presidents against redistributive pressures from below. When party-union ties allow labor leaders to develop careers as professional politicians, these leaders become more responsive to the party's goals than to their union base. Further, a centralized party organization can exclude unions and leftist factions from the design of redistributive policies. To test my argument, I use a case study of Brazil under the administration of the Worker's Party (PT).

The correlates of declining income inequality among emerging and developing economies during the 2000s

• Income inequality in developing countries tended to decline during the 2000s. • This did not just apply to Latin America: inequality fell in many other countries. • The tendency was stronger in countries with higher initial levels of inequality. • It was also stronger in countries subject to larger increases in commodity prices. • We also find a role for more redistributive fiscal policy, but only in Latin America. Since the early 2000s, trends in income inequality in emerging and developing economies have undergone a noticeable shift. While inequality tended to increase during the 1980s and 1990s, it has tended to fall since the early 2000s. In this paper we analyse the correlates of declining income inequality among emerging and developing economies during the 2000s. We estimate country-specific trends in market and disposable income inequality for a large sample of over 100 countries, and then use econometric analysis to examine the correlates of those trends. We find that the tendency toward declining inequality in the 2000s was stronger in countries with higher initial levels of inequality and larger increases in relative agricultural productivity, country-specific primary commodity prices, and remittance inflows. We also find a role for increases in educational attainments, tax revenues and government social spending, and trade liberalisation, but only in Latin America. The results suggest that the challenge now facing many emerging and developing countries is how to sustain the reductions in inequality achieved since the early 2000s, given the decline in commodity prices since 2015, and the social and economic repercussions of the COVID-19 pandemic.

Deliberating Inequality: A Blueprint for Studying the Social Formation of Beliefs about Economic Inequality

In most contemporary societies, people underestimate the extent of economic inequality, resulting in lower support for taxation and redistribution than might be expressed by better informed citizens. We still know little, however, about how understandings of inequality arise, and therefore about where perceptions and misperceptions of it might come from. This methodological article takes one step toward filling this gap by developing a research design—a blueprint—to study how people’s understandings of wealth and income inequality develop through social interaction. Our approach combines insights from recent scholarship highlighting the socially situated character of inequality beliefs with those of survey experimental work testing how information about inequality changes people’s understandings of it. Specifically, we propose to use deliberative focus groups to approximate the interactional contexts in which individuals process information and form beliefs in social life. Leveraging an experimental methodology, our design then varies the social makeup of deliberative groups, as well as the information about inequality we share with participants, to explore how different types of social environments and information shape people’s understandings of economic inequality. This should let us test, in particular, whether the low socioeconomic diversity of people’s discussion and interaction networks relates to their tendency to underestimate inequality, and whether beliefs about opportunity explain people’s lack of appetite for redistributive policies. In this exploratory article we motivate our methodological apparatus and describe its key features, before reflecting on the findings from a proof-of-concept study conducted in London in the fall of 2019.

Relationship Between Economic Growth, Income Inequality and Poverty by Provinces in Indonesia: Panel Data Regression Approach

Researchers found that the decrease in income inequality affects the reduction of poverty through redistribution policies. This redistribution policy has also accelerated poverty reduction. In addition, the researcher found that the element of growth led to the achievement of poverty reduction in the long term. Researchers show that economic growth has the power to determine poverty reduction. The type of data in this study uses secondary data sourced from the Central Statistics Agency (BPS), namely Gross Regional Domestic Product (GRDP) at Constant Prices (ADHK) 2010, Number of Poor Populations, and Gini Ratio by Provinces in Indonesia during the period 2015-2020. The analytical method used is panel data regression using three forms, namely: CEM (common effect model), FEM (fixed effect model), and REM (random effect model). Based on the empirical findings using panel data regression, it can be concluded that the variables of economic growth (LOGPDRB) and income inequality (GIN) are consistent with various panel regression models as well as the common effect model (CEM), fixed effect model (FEM) and random effect. model (REM) has a positive effect on the number of poor people. This means that if the two variables increase, there will also be an increase or increase in the number of poor people according to the provinces in Indonesia.

Still valuable? Reconsidering the role of authoritarian values among Japanese voters

AbstractThe Liberal Democratic Party (LDP) has dominated Japanese politics since its foundation in 1955. The party's ability to support the interests of small farmers and its commitment to the middle-class through redistributive economic policies have been regarded as among the primary factors leading to its prolonged hegemony. Yet, the LDP has occasionally relied on non-economic political appeals addressing rather conservative issues such as Japan's military force and the country's traditional values. These appeals have significantly intensified under the premiership of Junichirō Koizumi and his successor Shinzō Abe, whose authoritative leadership styles and nationalist agendas reveal the relevance of non-economic values. This study focuses on the role of authoritarian values in shaping vote choice in twenty-first century Japan. Previously emphasized in The Japanese Voter, the authority–liberty dimension has gradually lost prominence in recent models of voting behavior, where socio-economic factors have had a central role in explaining vote choice. Our inquiry places new emphasis on this value dimension and provides evidence for the enduring relevance of individual authoritarian dispositions in models of vote choice.

Is redistributive policy of EU welfare state effective in tackling income inequality? A panel data analysis

Research background: Income inequality has risen sharply since the 1990s, despite the increase in the average size of redistribution in countries representing different welfare state models. The problem of increasing income inequality is currently a challenge for the EU economies, not only with well-established liberal traditions, but also with conservative and social-democratic ones. Therefore, it is worth conducting research on the redistributive effects of fiscal policy. Purpose of the article: The article aims to show the redistributive effects of fiscal policy, paying particular attention to the most characteristic trends in redistribution, which are responsible for the growing income inequality. An overview of the fiscal instruments ? mainly personal income tax and benefit systems ? along with an empirical research on their potential impact on income inequality, allows for conclusions to be drawn about the effectiveness of redistributive policy in the EU countries. Methods: Both descriptive analysis and panel data analysis is implemented to examine the effectiveness of redistributive policy in tackling income inequality in the EU?28 countries in years 2005?2017. Findings & value added: Based on the panel analysis, it has been found that social transfers were much more effective than direct taxes in combating income inequality. In addition, the largest increase in income inequality ? as previously assumed ? was observed in the liberal welfare states, while the smallest in the social democratic welfare states. The empirical analysis extends the existing knowledge on main weaknesses of fiscal welfare state, indicating the required changes that may improve both its equity and efficiency.

Redistributive Policies of EU Member Countries in the Context of Welfare Regimes

This paper aims to use cluster analysis to monitor changes in the social regimes of EU countries in the context of their economic situation. In the first step, the paper provides an overview of theoretical studies and categorizes countries into individual social regimes based on available studies. Subsequently, hierarchical cluster analyses are performed for 2007 and 2019, one for a group of redistributive variables and one for socio-economic variables. The cluster analysis confirmed that differences among individual social regimes are blurred over time, and belonging to a social regime does not automatically lead to occurrence in the same cluster. The new and old member states are mixed in terms of redistributive variables, while economic differences among these countries are still present.

Addressing structural inequality of employment redistribution policy targets

Global trends of increased urbanisation have resulted in rising spatial inequality across cities, and land use challenges in providing adequate infrastructure, housing and employment for efficient, sustainable and productive urban systems. One policy response worldwide has been to use sub-regional quantity-driven job-housing targets, such as self-sufficiency, self-containment and jobs housing ratios, to redistribute jobs away from city central business districts into outer areas. To set these, city or state governments predict employment rises in often unclear and simplistic ways with no provision for job location differentials in type and residential access to opportunity. Despite the documented lack of success of such targets in addressing spatial inequality across a city, there is limited research into alternative tools. We address this gap by exploring a ratio to distinguish between strategic and population-driven jobs. Drawing on a case study of Greater Perth, Western Australia, we demonstrate rising spatial inequality despite over 60 years of land use policy measures to decentralise employment and equalise job provision across the city. Using Australian Bureau of Statistics (ABS) data, we classify and characterise 474 occupations into either strategic or population-driven jobs for the specific Greater Perth context. Our discussion highlights the importance of differentiating between job types, rather than targeting absolute growth, in order to implement more location-sensitive employment redistribution. Our findings highlight that disaggregated sub-regional job ratios may be a more appropriate land use planning tool to address spatial inequality than previous job-housing ratios.

Estimating the Income Elasticities of Health Expenditures for Income Quintiles and Inequality of Health Expenditures Distribution

Background: Determining the income elasticities of the household health expenditures, especially for income deciles, leads to adoption of appropriate policies to control and manage health expenditures among income deciles. Therefore, the main purpose of this study was to estimate the income elasticities of urban household health expenditures by income quintiles, and also calculate inequality in distribution of urban household health expenditures in Iran.
 Methods: This was a descriptive-analytical and applied study performed cross-sectionally with the Hackman two-stage method in Stata 16 software in 2021. The sample included 16,943 urban households in Statistics Center of Iran, and the data was extracted from the raw data of different sections of the cost and income questionnaire regarding urban households. Health expenditure inequality was measured by Gini coefficient, Robin Hood and Herfindal-Hershman indices.
 Results: The results showed that the income elasticity of health expenditures was 0.31 for the entire sample and 0.28, 0.66 and 0.36 for the first, second and fifth quintiles, respectively. The Gini, Robin Hood and Herfindal Hirschman indices were 0.240, 0.272 and 0.231, respectively. The increase in parents' educational level and household income, and having a child under seven and a private home had a positive effect and maternal employment had a negative effect on the increase of household health expenditures.
 Conclusion: Health is an important asset for urban households and the income quintiles; therefore, the adoption of redistributive policies is recommended to support households, especially the ones in the 2 lowest quintiles. The results of inequality indicators demonstrate the existence of inequality in the distribution of health expenditures; so, it is recommended to upgrade health insurance programs for low-income deciles, expand the coverage of essential medical services and receive premiums based on their ability to pay.

The nutrition right in Brazil: An analysis of state inefficiency in the coronavirus pandemic contexto

Issues linked to hunger and poverty are considered a serious political-social problem in Brazil, in which the situation is aggravated by the new coronavirus pandemic and the application of emergency measures. In detriment of this, the inefficiency of state actions with the aim of enshrining access to adequate food for all is evident, with a serious failure in the application of correct public policies, in which a vision of the government as a benefactor and not as a guarantor is established. of rights. Thus, we used a methodological procedure based on documental and exploratory analysis, with a bibliographic method, when analyzing literature on the subject and inserting a critical analysis of those referred, through a qualitative approach. From which an understanding of the right to food in relation to hunger and poverty in Brazil was made possible, as well as the understanding of failed actions regarding the guarantee of the aforementioned, in addition to the realization of the need to implement redistributive policies.

Varieties of trade unions and support for redistribution

Many studies of cross-national survey data find that union members are more likely to be supportive of redistributive policies than respondents who are not union members. Analysing British, German and Swedish survey data, this article demonstrates that the union membership effect on support for redistribution varies depending on the kinds of unions to which individuals belong. Regardless of their own income, wage-earners who belong to unions whose membership encompasses a wide swath of the income distribution tend to be more supportive of redistribution than members of unions that are less inclusive. This suggests that the decline of union membership among poorly paid wage-earners—a common trend across OECD countries—has more far-reaching implications for the politics of redistribution than commonly recognised. Supplemental data for this article can be accessed online at: https://doi.org/10.1080/01402382.2022.2048344 .