The Issue of Income Redistribution
| Authors | |
|---|---|
| Year of publication | 2014 |
| Type | Article in Periodical |
| Magazine / Source | Ekonomie a Management |
| MU Faculty or unit | |
| Citation | |
| web | http://www.ekonomie-management.cz/archiv/vyhledavani/detail/1085-the-issue-of-income-redistribution/ |
| Doi | http://dx.doi.org/10.15240/tul/001/2014-3-002 |
| Field | Management and administrative |
| Keywords | redistribution; efficiency; equity; social protection expenditure; economics development |
| Description | The issue of trade off efficiency and equity, which is represented by income redistribution, becomes increasingly debated not only in economic and social, but also in political dimension. Solution of this trade-off is virtually projected into the implementation of social policy and results achieved in macro economics policy, with the goal to define the optimal scope and character of the income redistribution processes. The submitted empirical study responds to this problem through the solution of research question concerning the existence of a relationship between the extent of selected classes of social protection expenditure (expenditure on policy of family, old age and unemployment) and the achieved level of economics development, quantified by Human Development Index (HDI). The existence of this relationship is statistically tested in the sample of 15 countries of the world economy. The research sample is heterogeneous in relation to the analysed indicators and it concerns countries with a different attained level of economics development and income redistribution policy. In most surveyed countries, based on the results of quantitative analysis was confirmed the impact of social protection expenditure on the reached level of economic development. In the area of family policy and old-age pensions this impact was positive and in the area of employment policy this impact was negative. A high level of heterogeneity of selected countries with respect to the observed aspects proves a markedly different extent and nature of redistribution processes. The findings of the research should therefore be analysed more deeply through the redistribution theory of defined compromise “trade off” between efficiency and equity. The compromise in each country depends on the character of the subparts and the models of social policy. From our perspective, these are models of family policy, labour market policy and concepts of pension policy. |
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