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.
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Wolfson, D.J. Pen and tinbergen on income distribution: A review article. De Economist 127, 446–458 (1979). https://doi.org/10.1007/BF02384156
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DOI: https://doi.org/10.1007/BF02384156