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Structural reforms and income distribution: new evidence for OECD countries

Rasmus Wiese, Joao Jalles and Jakob de Haan

Oxford Economic Papers, 2024, vol. 76, issue 4, 1071-1088

Abstract: This article examines the impact of labour market and product market reforms on income inequality for 25 OECD countries between 1970 and 2020, using the local projections approach and an updated narrative-based dataset of the reform indicators. Our results suggest that both types of (endogenized) market-oriented reforms increase income inequality, but the effects are small. Consistent with this finding is that counter-reforms lead to less income inequality. Our results also indicate that the inequality-increasing effect of market-oriented reforms is mostly a result of more income going to the top of the income distribution.

JEL-codes: D31 H30 J21 L43 L51 (search for similar items in EconPapers)
Date: 2024
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Related works:
Working Paper: Structural Reforms and Income Distribution: New Evidence for OECD Countries (2023) Downloads
Working Paper: Structural Reforms and Income Distribution: New Evidence for OECD countries (2023) Downloads
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