Impact of Personal Income Tax on Income Inequality: With a Focus on OECD Countries

유지연; KIM， SANGHEON; Heontae Shin

Income polarization tends to have deepened around the world. Traditionally, the redistributive function of tax policy has been regarded as one of the main features of tax policies to mitigate income inequality. However, according to previous studies, as a result of analyzing the determinants of income inequality targeting developing countries, it shows that tax policy does not carry out an effective redistributive function, and income redistribution effect is also weak in Korea. Considering economic･policy･labor-sociological factors, this paper tries to analyze the redistributive effect of personal income tax focusing on OECD countries by using system GMM. The finding is that the personal income tax has a significant and positive effect on Gini coefficient, meaning that tax policy focused on personal income tax does not perform any income redistributive function. Finally, this paper suggests policy implications.

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* 2021년 이후 발행 논문의 참고문헌은 현재 구축 중입니다.

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