Title Does redistribution hurt growth? An empirical assessment of the redistribution–growth relationship in the European Union
Authors CHRISTL, MICHAEL, De Poli S. , Köppl-Turyna M.
External publication No
Means Econ. Model.
Scope Article
Nature Científica
JCR Quartile 1
SJR Quartile 1
Web https://www.scopus.com/inward/record.uri?eid=2-s2.0-105003748513&doi=10.1016%2fj.econmod.2025.107104&partnerID=40&md5=cacbcb2a7ec8a9eaa17e5ce4d13d768d
Publication date 01/01/2025
ISI 001494517600001
Scopus Id 2-s2.0-105003748513
DOI 10.1016/j.econmod.2025.107104
Abstract This paper examines the impact of inequality and redistribution on economic growth in the EU. While past research finds inequality harms long-term growth, the effects of redistribution remain debated. Using panel data from 25 EU countries (2007–2019), we introduce the Net Benefit Share as a measure for targeted redistribution. Our findings show that market inequality boosts short-term growth, but redistribution targeted to low-income households further enhances it mainly via the consumption channel. In contrast, redistribution to high-income earners and pensioners reduces growth. These results highlight the importance of well-targeted redistributive policies for economic performance. © 2025
Keywords European union; Growth; Inequality; Redistribution
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