Comparative Research with Net and Gross Income Data: An Evaluation of Two Netting Down Procedures for the LIS Database

Nieuwenhuis, Rense; Munzi, Teresa; Gornick, Janet C.

doi:10.1111/roiw.12233

Cited by 14 publications

(10 citation statements)

References 9 publications

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“…First, it has been well documented that women’s earnings attenuate rather than exacerbate earnings inequality among coupled households (Gregory, 2009). This means that trends in women’s earnings and of economic inequality are intrinsically linked at the household level (Harkness, 2013; Lam, 1997; Nieuwenhuis et al, 2017). As women’s earnings (on average) have been rising over time, with more women being employed and having gained stronger positions in the labour market with higher status positions and higher wages (Costa, 2000), and as the number of women without earnings of their own declined, the attenuating effect of their earnings on household inequality increased.…”

Section: Introductionmentioning

confidence: 99%

Family policy as an institutional context of economic inequality

2018

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It is demonstrated that family policies are an important aspect of the institutional context of earnings inequality among coupled households. Although seldom integrated into prominent analyses of economic inequality, women's earnings are consistently found to reduce relative inequality among households. This means that family policies, as well-known determinants of women's employment and earnings, are important contextual determinants of economic inequality. Using Luxembourg Income Study data from 18 OECD countries in the period 1981-2008, this study demonstrates that women have higher earnings, and that their earnings reduce inequality among coupled households more in institutional contexts with generous paid leave and public childcare. We found no sizeable association between financial support policies, such as family allowances and tax benefits to families with children, and the degree to which women's earnings contribute to inequality among coupled households. Family policy arrangements that facilitate women's employment and earnings are associated with less economic inequality among coupled households.

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Section: Introductionmentioning

confidence: 99%

Family policy as an institutional context of economic inequality

2018

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“…The LIS database allows scholars to access the microdata, so that income inequality measures and fiscal redistribution (and the partial effect per social programme) can be derived consistently from the underlying data at the individual and household level. LIS microdata seem to be the best available data for describing how income inequality and the redistributive effects of income taxes and social transfers vary across countries and over time (Nolan and Marx, ; Smeeding and Latner, ; Nieuwenhuis, Munzi and Gornick, ). We apply a cross‐national analysis using comparable income surveys for all countries of LIS from 1982–2014.…”

Section: Methodsmentioning

confidence: 99%

Has the redistributive effect of social transfers and taxes changed over time across countries?

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Goudswaard

Wang

et al. 2019

Int Social Security Review

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In most Member countries of the Organisation for Economic Co‐operation Development (OECD), the income gap between rich and poor has widened over the past decades. This article analyses whether and to what extent income taxes and social transfers have contributed to this trend. Has the redistributive impact of different social programmes changed over time? We use microdata from the LIS Cross National Data Center in Luxembourg for the period 1982–2014 and study both the total population and the working‐age population. In contrast to the results of some other studies, especially by the OECD, we do not find that redistribution has declined. Tax‐benefit systems around 2013 are more effective at reducing income inequality compared to the mid‐1980s and the mid‐1990s, especially among the total population. Changes in social programmes are not a driver of greater income inequality across the countries included in this study.

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“…Where available, earnings net of taxes and social security contributions were used and when necessary net earnings were calculated by subtracting taxes and social security contributions from gross earnings. Procedures for doing this are described in detail by Nieuwenhuis et al (2016).…”

Section: Methodsmentioning

confidence: 99%

Women’s earnings and household inequality in OECD countries, 1973–2013

2016

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This article shows that women's rising earnings contributed to reducing inequality in household earnings, with respect to couples. We use data from the Luxembourg Income Study (LIS) on 1,148,762 coupled households, covering 18 OECD countries and the period from 1973 to 2013. In this period, women's share of household earnings grew, spouses' earnings became more strongly and positively correlated in various countries, and inequality in women's earnings was reduced. Inequality in household earnings increased due to the rising correlation between spouses' earnings, but was reduced more by the decline of inequality in women's earnings. Had women's earnings remained unchanged since the 1970s and 1980s, inequality in household earnings would have been higher around 2010 in all observed OECD countries. Household inequality was reduced least by trends in women's earnings in countries with a long history of high female labor-force participation, such as Finland (3% reduction) and Sweden (5%), and most in countries that observed a stronger increase in female labor-force participation in recent decades such as Spain (31%) and the Netherlands (41%). As more countries are reaching a plateau in the growth of women's employment and earnings, the potential for further stimulating women's employment and earnings to counter both women's and household inequality seems to be increasingly limited.

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Comparative Research with Net and Gross Income Data: An Evaluation of Two Netting Down Procedures for the LIS Database

Cited by 14 publications

References 9 publications

Family policy as an institutional context of economic inequality

Family policy as an institutional context of economic inequality

Has the redistributive effect of social transfers and taxes changed over time across countries?

Women’s earnings and household inequality in OECD countries, 1973–2013

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