abstract: 'In recent decades income inequality has increased in many developed

  countries but the role of tax and transfer reforms is often poorly

  understood. We propose a new method allowing for the decomposition of

  historical changes in income distribution and redistribution measures

  into: (i) the immediate effect of tax-transfer policy reforms in the

  absence of behavioral responses; (ii) the effect of labor supply

  responses induced by these reforms; and (iii) a third component allowing

  us to explore the effect of changes in the distribution of a wide range

  of determinants, including the effect of employment changes not induced

  by policy reforms. The application of the decomposition to Australia

  reveals that the direct effect of tax-transfer policy reforms accounts

  for half of the observed increase in income inequality between 1999 and

  2008, while the increased dispersion of wages and capital incomes also

  played an important role.'
affiliation: 'Herault, N (Corresponding Author), Univ Melbourne, Melbourne Inst Appl
  Econ \& Social Res, Melbourne, Vic 3010, Australia.

  Herault, Nicolas; Azpitarte, Francisco, Univ Melbourne, Melbourne, Vic, Australia.

  Azpitarte, Francisco, Brotherhood St Laurence, Fitzroy, Vic, Australia.'
author: Herault, Nicolas and Azpitarte, Francisco
author-email: nherault@unimelb.edu.au
author_list:
- family: Herault
  given: Nicolas
- family: Azpitarte
  given: Francisco
da: '2023-09-28'
doi: 10.1111/roiw.12160
eissn: 1475-4991
files: []
issn: 0034-6586
journal: REVIEW OF INCOME AND WEALTH
keywords: 'income inequality; labor supply; progressivity; redistributive effect;

  taxes and transfers'
keywords-plus: SCALE RELATIVITIES; PROGRESSIVITY; INEQUALITY
language: English
month: JUN
number: '2'
number-of-cited-references: '25'
orcid-numbers: 'Herault, Nicolas/0000-0003-2080-0390

  Azpitarte, Francisco/0000-0002-2688-6933'
pages: 266-282
papis_id: 65ac3aa522813b677bc16bfdbf47c049
ref: Herault2016understandingchanges
researcherid-numbers: 'Herault, Nicolas/K-7080-2012

  Azpitarte, Francisco/F-2170-2016'
times-cited: '14'
title: 'UNDERSTANDING CHANGES IN THE DISTRIBUTION AND REDISTRIBUTION OF INCOME: A
  UNIFYING DECOMPOSITION FRAMEWORK'
type: Article
unique-id: WOS:000382959900004
usage-count-last-180-days: '1'
usage-count-since-2013: '5'
volume: '62'
web-of-science-categories: Economics
year: '2016'