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Predistribution vs. Redistribution: Evidence from France and the U.S

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Abstract

We construct series of post-tax income for France over the 1900-2018 period and compare them with U.S. series. We quantify the extent of redistribution and estimate the impact of redistribution vs pretax inequality on post-tax inequality. We obtain three major findings. First, redistribution has increased in both countries to reach similar levels today. Second, the long-run decline in post-tax inequality in France is due mostly to the fall in pretax inequality. Third, the relative lower post-tax inequality in France is entirely explained by differences in pretax inequality. This suggests that more attention should be paid to policies affecting pretax inequality.
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Dates and versions

hal-03832233 , version 1 (27-10-2022)

Identifiers

  • HAL Id : hal-03832233 , version 1

Cite

Antoine Bozio, Bertrand Garbinti, Jonathan Goupille-Lebret, Malka Guillot, Thomas Piketty. Predistribution vs. Redistribution: Evidence from France and the U.S. 2022. ⟨hal-03832233⟩
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