EconPapers    
Economics at your fingertips  
 

Why Is Europe More Equal Than the United States?

Thomas Blanchet (), Lucas Chancel and Amory Gethin ()
Additional contact information
Lucas Chancel: PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, WIL - World Inequality Lab

World Inequality Lab Working Papers from HAL

Abstract: We combine all available household surveys, income tax and national accounts data in a systematic manner to produce comparable pretax and posttax income inequality series in 38 European countries between 1980 and 2017. Our estimates are consistent with macroeconomic growth rates and comparable with US Distributional National Accounts. We find that inequalities rose in most European countries since 1980 both before and after taxes, but much less than in the US. Between 1980 and 2017, the European top 1% pretax income share rose from 8% to 11% while it rose from 11% to 21% in the US. Europe's lower inequality levels are mainly explained by a more equal distribution of pretax incomes rather than by more equalizing taxes and transfers systems. "Predistribution" is found to play a much larger role in explaining Europe's relative resistance to inequality than "redistribution": it accounts for between two-thirds and

Date: 2020-09
New Economics Papers: this item is included in nep-eec, nep-ltv and nep-pke
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-03022133
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://halshs.archives-ouvertes.fr/halshs-03022133/document (application/pdf)

Related works:
Working Paper: Why Is Europe More Equal Than the United States? (2020) Downloads
Working Paper: Why Is Europe More Equal Than the United States? (2020) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wilwps:halshs-03022133

Access Statistics for this paper

More papers in World Inequality Lab Working Papers from HAL
Bibliographic data for series maintained by Caroline Bauer ().

 
Page updated 2021-07-13
Handle: RePEc:hal:wilwps:halshs-03022133