Redistributive Effect and Unequal Income Tax Treatment

Dados Bibliográficos

ID9719109
AutoresJ Richard Aronson (Lehigh University), Paul Johnson (0000-0003-3342-3504, Institute for Fiscal Studies), Peter J Lambert (University of York)
Ano1994
Volume104
Fascículo423
Páginas262
Data de publicação1994-03-01
Peer ReviewedSim
Open AccessNão
TipoARTICLE
PeriódicoThe Economic Journal (JOURNAL)
Identificadores do periódicoISSN: 0013-0133 • E-ISSN: 1468-0297
EditoraOxford University Press (OUP) (PUBLISHER)
DOI10.2307/2234747
OpenAlexW4252154825
IdiomaEN
Citações recebidas34

Decomposing the post-tax Gini coefficient across groups of pre-tax equals reveals the separate contributions to the redistributive effect of an income tax of: (i) the effective schedule (we call this the 'vertical effect'), (ii) the unequal treatment of equals arising from departures from this effective schedule (the 'horizontal effect') and (iii) the reranking of unequals as a result of such departures (the 'reranking effect'). The methodology is applied to UK microdata. Throughout the period 1978-1991, reranking understates the (negative) contribution to redistributive effect of unequal tax treatment by about one third, and is far outweighed by the vertical effect

Demographic economics · Econometrics · Economic inequality · Economics · Gini coefficient · Income tax · Inequality · Labour economics · Microdata (statistics · Public economics · Schedule · Demography · Fiscal Policy and Economic Growth · Gender, Labor, and Family Dynamics · Mathematics · Taxation and Compliance Studies