The unequal conversion of intended redistribution into factual redistribution in Europe and its impact on social inequalities between families

Abstract

Redistribution is one of the key elements of contemporary social order, and research has dealt with it in various ways. Most welfare state research mixes in its analysis the regulations on redistribution and actual outcomes. However, to adequately understand redistribution, one needs to distinguish between regulations and outcomes. Measuring unequal conversion in terms of deviations between redistributions as regulated and redistributive outcomes shows how far a redistribution corresponds to what has been officially agreed upon in societies and who is actually better or worse off in the end. Empirically focusing on family-related redistribution, our analysis was based on European Union Statistics on Income and Living Conditions data and the European microsimulation tool EUROMOD. First, we assumed that differences between regulations and outcomes vary depending on the family type. Thus, we compared the actual and simulated disposable household income for various family types. Second, we assumed that differences between regulations and outcomes vary by country. Consequently, we analysed a variety of European countries. Our findings showed that there are substantial differences between regulations on redistribution and outcomes. These differences increase income inequalities between families. This held true for all of our study countries, although to a different degree.