Publicly‐provided Services: How Do they Change the Distribution of Households' Economic Resources?

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Public services to households significantly narrow inequality, although this reduction is typically lower than that achieved by the combined effect of household taxes and public cash transfers. This inequality‐reducing effect results mainly from a relatively uniform distribution of these services across the population, which implies that they account for a larger share of the resources of people at the bottom of the distribution than at the top.

Document Type: Review Article

Publication date: October 1, 2008

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