Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/203958 
Authors: 
Year of Publication: 
2012
Series/Report no.: 
wiiw Working Paper No. 93
Publisher: 
The Vienna Institute for International Economic Studies (wiiw), Vienna
Abstract: 
A multi-level approach to test for the determinants of income polarization both at the household as well as the country level is applied to a panel of about 300,000 households in EU countries over the period of 2003-2009. Among the policy relevant macro variables, higher progressive labour taxation and to a certain extent capital taxation is positively correlated with lower levels of income polarization. Also public expenditures on social protection, education and economic subsidies are related to a lower degree of polarization. Finally, lower unemployment, a stronger industrial base and more trade openness are also associated with lower levels of polarization.
Subjects: 
government expenditures
taxes
income polarization
multi-level model
JEL: 
D63
H23
H5
Document Type: 
Working Paper

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