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Welfens, P.J.J./Udalov, V.: International Inequality Dynamics: Issues and Evidence of a Redistribution Kuznets Curve

Welfens, P.J.J./Udalov, V.: International Inequality Dynamics: Issues and Evidence of a Redistribution Kuznets Curve


JEL Classification: D60, D63, H55, P00
Key Words: Inequality, World Value Survey, Kuznets Curve, Empirical Analysis, Social Market Economy



We consider the main international inequality dynamics and identify new challenges plus empirical findings for OECD countries and the world economy. The focus is on key elements of income inequality in rich and poor countries – and on the drivers of international and national inequality. The econometric results presented show crucial new insights about the role of individuals’ redistribution preferences and the impact of other variables. The findings herein indeed suggest the existence of an Income Redistribution Kuznets Curve for a broad group of countries from the World Value Survey. Key conclusions concern the willingness of countries to cooperate. The economic control variables suggest that education and postmaterialism weaken the interest in redistribution while other variables reinforce the support for redistribution policy. Regional cooperation and benchmarking could be useful as well as applying the golden rule in poor countries. The analysis also explains US populism and argues that this will be a structural problem, related to inequality, for years to come.

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