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Income Distribution and Social Security in an OECD Perspective


Koen Caminada


Leiden Law School - Department of Economics

Kees Goudswaard


Leiden Law School - Department of Economics

July 16, 2009

SOCIAL SECURITY IN THE GLOBAL VILLAGE, INTERNATIONAL SOCIAL SECURITY SERIES, Roland Sigg & Christina Behrendt, eds., Transaction Publishers, New Brunswick, Vol. 8, pp. 163-188, 2009

Abstract:     
The last two decades show an trend towards a less equal income distribution in OECD. There are many causes for this trend. This paper analysis whether changes in social security systems are one of these causes. For some OECD-countries we find a relationship between changing welfare state policies (as measured by expenditure ratios and replacement rates) and changing income inequality, but for others not. Especially the United Kingdom and the Netherlands combined an above average rise in inequality with a reduction in the generosity of the welfare system. For this reason we studied the case for the Netherlands in more detail. A budget incidence analysis for the period 1981-1997 indicates that changes in social policy indeed explain a large part of the increase in income inequality.

Number of Pages in PDF File: 22

Keywords: Social policy, income distribution (indices), taxes and transfers

JEL Classification: D31, H22, H55

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Date posted: July 16, 2009  

Suggested Citation

Caminada, Koen and Goudswaard, Kees, Income Distribution and Social Security in an OECD Perspective (July 16, 2009). SOCIAL SECURITY IN THE GLOBAL VILLAGE, INTERNATIONAL SOCIAL SECURITY SERIES, Roland Sigg & Christina Behrendt, eds., Transaction Publishers, New Brunswick, Vol. 8, pp. 163-188, 2009. Available at SSRN: http://ssrn.com/abstract=1434900

Contact Information

Koen Caminada (Contact Author)
Leiden Law School - Department of Economics ( email )
P.O. Box 9520
2300 RA Leiden, NL-2300RA
Netherlands
++31715277858 (Phone)
HOME PAGE: http://www.law.leiden.edu/organisation/taxlawandeconomics/economics/staff/caminada.html
Kees Goudswaard
Leiden Law School - Department of Economics ( email )
P.O. Box 9520
2300 RA Leiden, NL-2300RA
Netherlands
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