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  • This article combines all available survey, income tax, and national accounts data to produce pretax and posttax income inequality series in twenty-six European countries from 1980 to 2017. Our estimates are consistent with macroeconomic growth rates and comparable with U.S. distributional national accounts. Inequality grew in nearly all European countries, but much less than in the U.S. This rise was concentrated at the top end of the income distribution and was most pronounced in Eastern Europe. Contrary to a widespread view, we demonstrate that Europe’s lower inequality levels cannot be explained by more equalizing tax-and-transfer systems. After accounting for indirect taxes and in-kind transfers, the U.S. redistributes a greater share of national income to low-income groups than any European country. “Predistribution”, not “redistribution”, explains why Europe is less unequal than the United States. (xsd:string)
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  • 2022 (xsd:gyear)
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  • 2022 (xsd:gyear)
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  • 480 (xsd:string)
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  • Why Is Europe More Equal than the United States? (xsd:string)
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  • In American Economic Journal: Applied Economics, 14(4), 480-518, 2022 (xsd:string)
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  • European Union Statistics on Income and Living Conditions (EU-SILC) (xsd:string)
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  • 2022 (xsd:string)
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  • 14 (xsd:string)