Redistribution toward Low Incomes in Richer Countries

Emmanuel Saez

in Understanding Poverty

Published in print May 2006 | ISBN: 9780195305197
Published online September 2006 | e-ISBN: 9780199783519 | DOI:
 Redistribution toward Low Incomes in Richer Countries

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This essay presents a critical overview of the findings of economic research on the problem of redistribution toward low incomes in developed countries. The discussion is organized as follows. The second section briefly describes the positive and empirical analysis (for which numerous good surveys are available) and focuses mostly on the normative analysis. The third section starts with a discussion of the optimal structure of cash transfer programs, then extends the analysis of optimal transfer programs along various new dimensions. The fourth section discusses how the results of the third section might be affected in situations where individuals may not be able to make the best choices for themselves. The fifth section provides a conclusion and an educated view on what should be done for redistribution toward low incomes.

Keywords: income support programs; welfare; low income; developed countries

Chapter.  6436 words.  Illustrated.

Subjects: Economic Development and Growth

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