Determinant factors in the convergence of welfare effort in OECD countries: a decomposition of the Theil indices

Jon Olaskoaga-Larrauri, Ricardo Alaez-Aller and Eneko Arrospide-Zabala

Applied Economics Letters, 2011, vol. 18, issue 13, 1263-1266

Abstract: This article uses Theil's index to confirm the convergence of welfare effort in 21 developed countries. Taking advantage of the properties of this index, this article decomposes the dispersion of effort into its immediate determinants and thus illustrates that it is possible for there to be convergence in welfare effort but not in the intensity with which national systems protect their citizens.

Date: 2011
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DOI: 10.1080/13504851.2010.532102

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