Browsing by Author "Carranza, Rafael"

Now showing 1 - 3 of 3
  • Thumbnail Image
    Item
    Assessing income redistribution: what are the key analytic choices?
    (2024) Carranza, Rafael; Nolan, Brian
    We present the extent of divergence in the literature on the stylised facts about income redistribution in rich countries. Analytical choices that underpin this divergence are then identified and investigated empirically using microdata for 30 European countries. In terms of direct redistribution via cash transfers and direct taxes, whether social insurance pensions are treated as redistribution - the conventional approach - or as market income - as in some recent studies - is seen to be critical. When the analysis is extended to include indirect taxes and non-cash benefits from state spending, they work in opposite directions and generally have only a limited net redistributive impact. Being able to attribute the benefits of such spending to households in more satisfactory ways is a priority. Whether household survey data are 'corrected' to include missing incomes at the top as well as imputed rent of owner-occupiers and undistributed profits of companies is also seen to have a substantial impact on the scale of measured redistribution. Finally, extending the scope of redistributive analysis to include all of national income, as in recent studies from a Distributional National Accounts perspective, is investigated. This underlines the implications of including state spending on collective goods such as security and infrastructure, without a clear rationale for how it is meaningfully allocated across households.
  • No Thumbnail Available
    Item
    Intergenerational poverty persistence in Europe - Is there a 'Great Gatsby Curve' for poverty?
    (2024) Bavaro, Michele; Carranza, Rafael; Nolan, Brian
    While the influence of poverty in childhood on adulthood outcomes has been extensively studied, little is known about how the strength of intergenerational persistence in poverty itself varies across countries. Here we examine the intergenerational persistence of poverty in a comparative analysis of 30 European countries using data from the 2019 ad hoc module of the EU-SILC dataset. We construct proxy measures of poverty in the parental household employing information on the inability to meet basic needs and financial hardship when growing up, together with parental education and occupational social class. The strength of the association between current poverty based on the indicators at the core of the EU's social inclusion process and these measures of parental poverty is assessed and compared across countries. The cross-country variation in poverty persistence is probed concerning its relationship with the current and past extent of poverty: persistence tends to be stronger where current or parental poverty is higher, analogous to the Great Gatsby Curve relating intergenerational income mobility to income inequality at the country level. Mediation analysis highlights the role of own education as well as occupation in underpinning the observed relationship between current and parental poverty.
  • Thumbnail Image
    Item
    What makes elites more or less egalitarian? Variations in attitudes towards inequality within the economic, political and cultural elites in Chile
    (2024) Carranza, Rafael; Contreras, Dante; Otero, Gabriel
    This article investigates how the type of elite to which a person belongs and their intergenerational contextual experiences are associated with attitudes towards inequality among elite individuals. We propose that membership of the economic elite and access to private schools, higher education business schools and affluent residential areas may contribute to the development of views that favour inequality. Using unique survey data collected in 2018 from a sample of 416 individuals belonging to Chile's economic, political and cultural elites, we construct an additive score to measure attitudes towards inequality. Results of our regression analyses indicate that individuals belonging to the economic and political elite are more tolerant of inequality than members of the cultural elite. Moreover, intergenerational experiences at both private schools and higher education business schools significantly contribute to the formation of attitudes that favour inequality. These contextual experiences also relate to significant attitudinal variations within all elite groups.