WEALTH AND THE DISTRIBUTION OF INCOME, CANADA 1969–70

This paper explores the sensitivity of the size distribution of family income in Canada to alternative definitions of income. These alternative definitions examine both wealth generally in the form of an annuity equivalent, and home ownership in the form of imputed rent. An adjustment for family size differences is also made. The impact of these adjustments is assessed for average incomes, inequality, and the incidence of low income for different age groups. The adjustments do have significant effects that vary by age; in particular, the economic position of the elderly seems understated by the usual data. Also, methodological considerations, such as the direct use of micro data and the choice of inequality indicator are shown to be significant.     

Pen and tinbergen on income distribution: A review article

Summary The book under review combines a brief survey of the state of the art in income distribution theory, based primarily on the earlier contributions of the authors, with a wealth of information on the reduction (by about 50 percent) of income inequality in the Netherlands over the last 40 years. Furthermore, progress is charted towards a further reduction of inequality between now and 1990. This review argues that labour income is not just determined by (the demand for) technology and (the supply of) education, but also by the bias towards the demand for skilled labour that seems to result from the expansion of public expenditure. It is recommended that this expenditure incidence on the primary distribution of income be further explored in future research programmes, as it is likely to slow down further progress towards equality.     

Its Bark is Worse Than its Bite: The Wage and Employment Effects of the Minimum Wage in the US

This study examines the effect of changes in the US minimum wage on wages and employment in 32 industries selected for their presumed sensitivity to the minimum wage. Applying time series techniques commonly used in macroeconomics and finance to changes in the minimum wage occurring from 1967 and 1991, we initially test for a wage response; only where one is found do we test for an employment response. Twenty-five per cent of the industry/minimum-wage-increase pairs show evidence of an appropriate wage response. Eight of these 54 show a statistically significant negative employment response, while six show significant, positive employment responses. Positive effects may be due to either a high variance distribution centred on zero or markets with 'lemons' problems concerning worker quality. Limiting analysis to industries in which the minimum wage binds provides no evidence of a consistent negative relationship between the historical minimum wage and employment.     

Het verkeer in de binnenstad: een oplosbaar probleem

Gaarne betuigt.schrijver zijn dank aan Prof. Dr. P. Hennipman, Prof. Dr. C. Goedhart en Drs. E. van Thijn voor hun aanmoediging en critisch commentaar, uiteraard zonder hen in zijn verantwoordelijkheid voor het geschrevene te willen laten delen.     

The Czechoslovak Reform Movement, 1963–1968, A Study in the Theory of Socialism

This paper examines a fundamental issue in the theory of economic organization: the optimal level of market competition. Answers in neoclassical and new institutional economics are identified and critiqued. The analysis shows that selective assumptions in both fields produce distinctly market-favoring and "more competition is better than less" conclusions. The paper generalizes these assumptions and demonstrates organization-favoring and "less competition is better" positions are equally plausible. The paper also argues that part of the market-favoring bias in these fields stems from failure to distinguish between conditions of market failure and organizational success. Given these problems in extant theory, this paper develops an alternative institutional theory of economic organization, drawing principally on ideas of Walton Hamilton and John Commons. This proposed alternative shows that the optimal level of competition occurs at an intermediate level in the competition/cooperation spectrum (a mixed economy) and varies with five key determinants of the economic order.     

POVERTY, TNEQUALTTY, AND FAMTLY LIVING STANDARDS IMPACTS ACROSS SEVEN NATIONS: THE EFFECT OF NONCASH SUBSIDIES FOR HEALTH, EDUCATION AND HOUSING

The main aim of this paper has been to summarize the impact of noncash income–health and health education benefits, and imputed rent-on living standards, income distribution and poverty in seven nations at the beginning of the 1980s using the Luxembourg Income Study database. Our results do not give rise to a pattern of national differences in poverty rates or income inequality which are markedly different from that which emerges from previous LIS research based on cash income alone. While these results may be sensitive to the techniques used to measure and value noncash benefits in this paper, it appears that noncash income reinforces the redistributive impact or conventional (cash) tax-transfer mechanisms rather than acting to offset them in any major way.