Predistribution vs. Redistribution: Evidence from France and the U.S.
Antoine Bozio
(1, 2)
,
Bertrand Garbinti
(3, 4)
,
Jonathan Goupille-Lebret
(5, 6, 7, 8)
,
Malka Guillot
(9)
,
Thomas Piketty
(1, 2)
1
PSE -
Paris School of Economics
2 PJSE - Paris Jourdan Sciences Economiques
3 CREST - Centre de Recherche en Économie et Statistique
4 ENSAE - Ecole Nationale de la Statistique et de l'Analyse Economique
5 GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne
6 ENS de Lyon - École normale supérieure de Lyon
7 CEPR - Center for Economic Policy Research
8 CESifo
9 Université de Liège
2 PJSE - Paris Jourdan Sciences Economiques
3 CREST - Centre de Recherche en Économie et Statistique
4 ENSAE - Ecole Nationale de la Statistique et de l'Analyse Economique
5 GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne
6 ENS de Lyon - École normale supérieure de Lyon
7 CEPR - Center for Economic Policy Research
8 CESifo
9 Université de Liège
Antoine Bozio
- Fonction : Auteur
- PersonId : 743083
- IdHAL : antoine-bozio
- ORCID : 0000-0003-0201-6148
- IdRef : 129539597
Bertrand Garbinti
- Fonction : Auteur
- PersonId : 1119903
Jonathan Goupille-Lebret
- Fonction : Auteur
- PersonId : 742499
- IdHAL : jonathangoupille-lebret
- ORCID : 0000-0001-5827-6374
Thomas Piketty
- Fonction : Auteur
- PersonId : 1256308
- ORCID : 0000-0002-1261-2392
- IdRef : 033197563
Résumé
We construct series of post-tax income for France over the 1900–2018 period and compare them with U.S. series. We quantify the extent of redistribution—the reduction from pretax to post-tax inequality—and estimate the contribution of redistribution in explaining differences in post-tax inequality. We find that differences in pretax inequality drive most of the differences in post-tax inequality between France and the U.S., and that changes over time in both countries are mostly due to changes in pretax inequality. We highlight that the concept of redistribution can be empirically misleading for judging how policies reduce inequalities. Policies which reduce pretax inequality, i.e., predistribution, will reduce the magnitude of redistribution, while still reducing effectively post-tax inequality. This suggests that more attention should be paid to policies affecting pretax inequality.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Predistribution vs. Redistribution: Evidence from France and the U.S.
|
Résumé |
en
We construct series of post-tax income for France over the 1900–2018 period and compare them with U.S. series. We quantify the extent of redistribution—the reduction from pretax to post-tax inequality—and estimate the contribution of redistribution in explaining differences in post-tax inequality. We find that differences in pretax inequality drive most of the differences in post-tax inequality between France and the U.S., and that changes over time in both countries are mostly due to changes in pretax inequality. We highlight that the concept of redistribution can be empirically misleading for judging how policies reduce inequalities. Policies which reduce pretax inequality, i.e., predistribution, will reduce the magnitude of redistribution, while still reducing effectively post-tax inequality. This suggests that more attention should be paid to policies affecting pretax inequality.
|
Auteur(s) |
Antoine Bozio
1, 2
, Bertrand Garbinti
3, 4
, Jonathan Goupille-Lebret
5, 6, 7, 8
, Malka Guillot
9
, Thomas Piketty
1, 2
1
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
2
PJSE -
Paris Jourdan Sciences Economiques
( 578027 )
- 48 boulevard Jourdan 75014 Paris
- France
3
CREST -
Centre de Recherche en Économie et Statistique
( 2579 )
- 5, Avenue Henry Le Chatelier, 91120 Palaiseau
- France
4
ENSAE -
Ecole Nationale de la Statistique et de l'Analyse Economique
( 92774 )
- ENSAE-Sénégal Liberté VI extension - VDN, N° 26 BP 45512- Dakar Fann
- Sénégal
5
GATE Lyon Saint-Étienne -
Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne
( 1169844 )
- 93, chemin des Mouilles 69130 Écully 6, rue Basse des Rives 42023 Saint-Étienne cedex 02
- France
6
ENS de Lyon -
École normale supérieure de Lyon
( 6818 )
- 15 parvis René Descartes - BP 7000 - 69342 Lyon Cedex 07
- France
7
CEPR -
Center for Economic Policy Research
( 143559 )
- Royaume-Uni
8
CESifo
( 113029 )
- Munich
- Royaume-Uni
9
Université de Liège
( 93075 )
- Place du 20-Août, 7 4000 Liège
- Belgique
|
Langue du document |
Anglais
|
Nom de la revue |
|
Date de publication |
2023
|
Public visé |
Scientifique
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Domaine(s) |
|
Projet(s) ANR |
|
Mots-clés (JEL) |
|
Mots-clés |
en
Inequality, Redistribution, Predistribution, Taxes, Transfers
|
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