The Effect of Social Transfers in Western Europe: An Empirical Analysis of the Countries Using Generalized Lorenz Curves Katja Holsch

Abstract

This paper aims at examining the impact of different transfers on income distribution in five Western European countries by carrying out an empirical analysis using generalized Lorenz curve comparisons. The results obtained are then investigated by relating them to a classification of European social transfer systems. We conclude that clear differences can be found with regards to transfer arrangements and underlying strategies. This does not necessarily mean that those differences result in clearly distinct transfer rankings for every country: some transfers like unemployment and disability benefits have an obvious impact in countries with quite different underlying strategies and transfer arrangements.