Predistribution versus Redistribution: Evidence from France and the United States

A-Tier
Journal: American Economic Journal: Applied Economics
Year: 2024
Volume: 16
Issue: 2
Pages: 31-65

Score contribution per author:

0.804 = (α=2.01 / 5 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We construct series of posttax income for France over the 1900–2018 period and compare them with US series. We quantify the extent of redistribution—the reduction from pretax to posttax inequality—and estimate the contribution of redistribution in explaining differences in posttax inequality. We find that differences in pretax inequality drive most of the differences in posttax inequality between France and the United States, 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.

Technical Details

RePEc Handle
repec:aea:aejapp:v:16:y:2024:i:2:p:31-65
Journal Field
General
Author Count
5
Added to Database
2026-01-24