Structural Reforms and Income Distribution: New Evidence for OECD countries

Rasmus Wiese, Joao Jalles and Jakob de Haan

No 2023/0256, Working Papers REM from ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa

Abstract: This paper examines the impact of labour market and product market reforms on income inequality for 25 OECD countries, using the local projections approach and updates of the reform indicators put together by Duval et al. (2018) until 2020. Our results suggest that both types of (endogenized) reforms cause more income inequality. Consistent with this finding is that counter-reforms lead to less income inequality. However, the inequality-raising effects of reforms occur especially in countries that have below median levels of social spending; in countries where social spending is above the sample median, the effect of reform is mostly statistically insignificant.

Keywords: structural reforms; income distribution; local projections; nonlinearities (search for similar items in EconPapers)
JEL-codes: D31 H30 J21 L43 L51 (search for similar items in EconPapers)
Date: 2023-01
New Economics Papers: this item is included in nep-lma
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Structural reforms and income distribution: new evidence for OECD countries (2024)
Working Paper: Structural Reforms and Income Distribution: New Evidence for OECD Countries (2023)
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