EMPIRICAL RESULTS CONCERNING VERTICAL AND HORIZONTAL REDISTRIBUTION IN FINLAND

Risto Suominen

Review of Income and Wealth, 1979, vol. 25, issue 1, 83-103

Abstract: Redistributional effects of income transfers, taxation and social goods in Finland have been studied making use of household surveys for 1966 and 1971 and the input‐output study for 1970. According to the study the selection of income to be used as the criterion in carrying out the decile grouping substantially influences the picture that is obtained of the magnitude of redistribution. If factor income is used as the criterion in carrying out the decile grouping, the redistribution appears substantially greater than when disposable income is used as the criterion. On the other hand, whether income is calculated per capita or per household does not substantially influence the overall picture of redistribution obtained. The breakdown of factor income seems to have remained practically the same in Finland in the interval between the study years, while redistribution seems to have levelled income differences more in 1971 than in 1966.

Date: 1979
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