Author : Laurence M. Ball
Publisher : International Monetary Fund
Page : 24 pages
File Size : 15,62 MB
Release : 2013-06-21
Category : Business & Economics
ISBN : 1475567200
This paper examines the distributional effects of fiscal consolidation. Using episodes of fiscal consolidation for a sample of 17 OECD countries over the period 1978–2009, we find that fiscal consolidation has typically had significant distributional effects by raising inequality, decreasing wage income shares and increasing long-term unemployment. The evidence also suggests that spending-based adjustments have had, on average, larger distributional effects than tax-based adjustments.