Decomposing changes in income inequality into vertical and horizontal redistribution and reranking, with applications to China and Vietnam

"It is acknowledged that the lack of any systematic link between growth and income inequality does not necessarily mean that economic growth is not accompanied by major changes in the underlying income distribution. The author uses a method devised to decompose the redistributive effect of a ta...

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Bibliographic Details
Main Author: Wagstaff, Adam
Corporate Author: World Bank
Format: eBook
Language:English
Published: [Washington, D.C] World Bank 2005
Series:Policy research working paper
Subjects:
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
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245 0 0 |a Decomposing changes in income inequality into vertical and horizontal redistribution and reranking, with applications to China and Vietnam  |h Elektronische Ressource  |c Adam Wagstaff 
260 |a [Washington, D.C]  |b World Bank  |c 2005 
651 4 |a China / Economic conditions / 1976-2000 
651 4 |a Vietnam / Economic conditions / 1975- 
653 |a Progressive taxation / Vietnam 
653 |a Income distribution / China 
653 |a Progressive taxation / China 
653 |a Income distribution / Vietnam 
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500 |a Includes bibliographical references. - Title from PDF file as viewed on 4/25/2005 
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520 |a "It is acknowledged that the lack of any systematic link between growth and income inequality does not necessarily mean that economic growth is not accompanied by major changes in the underlying income distribution. The author uses a method devised to decompose the redistributive effect of a tax to analyze the extent to which vertical redistribution associated with changing incomes over time is offset or reinforced by horizontal redistribution and re-ranking. He uses panel data from China and Vietnam over a period when both countries grew spectacularly as they transitioned from planned to market economies, and yet experienced smaller annual percentage increases in income inequality. The results suggest that substantial amounts of horizontal redistribution and re-ranking in both China-and to a lesser extent Vietnam-more than offset pro-poor vertical redistribution. Without the horizontal redistribution and re-ranking, the Gini coefficient for China might have fallen between 1989 and 1997-substantially so. "--World Bank web site