The Political Economy of Compensatory Redistribution: Unemployment, inequality and policy choice

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1 novembre 2016

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info:eu-repo/semantics/altIdentifier/hdl/2441/279c1p74ui9kcrejshiub9vspv

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Jonas Pontusson et al., « The Political Economy of Compensatory Redistribution: Unemployment, inequality and policy choice », HAL SHS (Sciences de l’Homme et de la Société), ID : 10670/1.d31341...


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This paper explores common trends in inequality and redistributionacross OECD countries from the late 1980s to 2013. Low-end inequalityrises during economic downturns while rising top-end inequalityis associated with economic growth. Most countries retreatedfrom redistribution from the mid-1990s until the onset of the GreatRecession and compensatory redistribution in response to rising unemploymentwas weaker in 2008-13 than in the first half of the1990s. As unemployment and poverty risk became increasingly concentratedamong workers with low education, middle-income opinionhas become more permissive of cuts in unemployment insurance generosityand income assistance to the poor. At constant generosity, theexpansion of more precarious forms of employment reduces compensatoryredistribution during downturns because temporary employeesdo not have the same access to unemployment benefits as permanentemployees.

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