The Impact of Publicly Provided Services on the Distribution of Resources Review of New Results and Methods

This paper looks at how the income distribution in countries changes when the value of publicly-provided services to households is included. We consider five major categories of public services: education, health care, social housing, childcare and elderly care. On average across OECD countries, spe...

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1. Verfasser: Verbist, Gerlinde (VerfasserIn)
Weitere Verfasser: Förster, Michael (MitwirkendeR), Vaalavuo, Maria (MitwirkendeR)
Format: Elektronisch E-Book
Sprache:English
Veröffentlicht: Paris OECD Publishing 2012
Schriftenreihe:OECD Social, Employment and Migration Working Papers
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520 |a This paper looks at how the income distribution in countries changes when the value of publicly-provided services to households is included. We consider five major categories of public services: education, health care, social housing, childcare and elderly care. On average across OECD countries, spending on these "in-kind" benefits accounts for about 13% of GDP, slightly more than the spending on cash transfers - but with considerable cross-country variation. Broadening the income concept to account for in-kind benefits considerably increases households' economic resources: in a typical OECD country, the average annual household income would be close to USD 28 000, rather than USD 22 000 in purchasing power parities. But public services also contribute to reducing income inequality, by between one-fifth and one-third depending on the inequality measure. Mexico and, according to most inequality measures, the United States, Portugal, Ireland, and the United Kingdom record higher reduction rates, while Slovenia records lower ones. Across all countries, redistributive effects are stronger among specific population groups at higher risk of poverty. Between 2000 and 2007, the redistributive impact of public services remained stable overall. However, the impact became stronger in countries where the share of services in household income increased significantly, while it weakened in those countries where this share decreased. The paper suggests that publicly provided services fulfil an important direct redistributive role in OECD countries 
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series2 OECD Social, Employment and Migration Working Papers
spellingShingle Verbist, Gerlinde
The Impact of Publicly Provided Services on the Distribution of Resources Review of New Results and Methods
Employment
Social Issues/Migration/Health
title The Impact of Publicly Provided Services on the Distribution of Resources Review of New Results and Methods
title_auth The Impact of Publicly Provided Services on the Distribution of Resources Review of New Results and Methods
title_exact_search The Impact of Publicly Provided Services on the Distribution of Resources Review of New Results and Methods
title_full The Impact of Publicly Provided Services on the Distribution of Resources Review of New Results and Methods Gerlinde Verbist, Michael Förster and Maria Vaalavuo
title_fullStr The Impact of Publicly Provided Services on the Distribution of Resources Review of New Results and Methods Gerlinde Verbist, Michael Förster and Maria Vaalavuo
title_full_unstemmed The Impact of Publicly Provided Services on the Distribution of Resources Review of New Results and Methods Gerlinde Verbist, Michael Förster and Maria Vaalavuo
title_short The Impact of Publicly Provided Services on the Distribution of Resources
title_sort the impact of publicly provided services on the distribution of resources review of new results and methods
title_sub Review of New Results and Methods
topic Employment
Social Issues/Migration/Health
topic_facet Employment
Social Issues/Migration/Health
url https://doi.org/10.1787/5k9h363c5szq-en
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