The Political Economy of Compensatory Redistribution: Unemployment, inequality and policy choice (LIEPP Working Paper, n°59)

Jonas Pontusson & David Weisstanner
This paper explores common trends in inequality and redistribution across OECD countries from the late 1980s to 2013. Low-end inequality rises during economic downturns while rising top-end inequality is associated with economic growth. Most countries retreated from redistribution from the mid-1990s until the onset of the Great Recession and compensatory redistribution in response to rising unemployment was weaker in 2008-13 than in the first half of the 1990s. As unemployment and poverty risk became increasingly...

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  • University of Geneva
  • University of Bern