By Alberto Alesina
During this this well timed learn of the various ways of the United States and Europe to the issues of household inequality and poverty, the authors describe simply how diversified the 2 continents are within the point of nation engagement within the redistribution of source of revenue. They talk about a number of attainable financial reasons for the variation, together with various degrees of pre-tax source of revenue, openness, and social mobility; they survey politico-historical transformations corresponding to the various actual measurement of countries, their electoral and criminal structures, and the nature in their political events, in addition to their reviews of battle; they usually research sociological factors which come with varied attitudes to the negative and notions of social accountability, in addition to, most significantly, attitudes to race.
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Extra resources for Fighting Poverty in the US and Europe: A World of Difference
Source: Nickell and Layard (1999) and Nickell (1997). Redistribution in the United States and Europe European average. The ﬁrst column of the table reports an index compiled by the OECD that combines several aspects of legislation designed to protect workers in the workplace (see Appendix). The minimum score (representing the least protection) is 0 and the maximum is 10. The second column reports an index of employment protection (that is, restrictions on the ability of enterprises to terminate employees), with 20 indicating the strictest protection.
1. 4) Source: Alesina, Glaeser, and Sacerdote (2001); original source Tanzi and Schuknecht (2000) and OECD. 20 Redistribution in the United States and Europe nineteenth century, the absolute difference grew as the welfare state expanded both in Europe and the United States, especially in the 1960s and 1970s. The observation that the difference is longstanding is important, because it allows us to exclude explanations of the difference that are speciﬁc to a certain period or event. 3. 1. Income support policies and safety nets We consider a representative household in Germany, Sweden, and the United States; speciﬁcally we investigate to what extent are existing welfare programs beneﬁcial to such a household when it experiences needs such as the costs of raising a child, of sickness, of disability, and of extreme poverty.
Labor market regulation does not necessarily beneﬁt the very poor. In fact, a large literature, which we cannot even begin to review, suggests that the insiders, that is, union members in large industries, have beneﬁted from labor market regulations, while the outsiders, often poorer than insiders, are disadvantaged. One can also argue that these regulations create or at least prolong unemployment, which may be also associated with increasing inequality. Certainly, the rhetoric of European Unions in support of labor market regulation suggests that they defend the underprovided workers against the business community, but this may just be precisely, rhetoric.