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How Much Redistribution Do Governments Achieve? The Role of Cash Transfers and Household Taxes

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OECD countries differ significantly in how much income they redistribute through government cash transfers and household taxes ‐ and those countries that redistribute more achieve a more narrow distribution of final income. The redistribution achieved by public cash transfers is generally larger than that of household taxes, and countries that have more targeted programmes tend to spend less than others.

Document Type: Review Article

Publication date: October 1, 2008

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