| Abstract: |
Drawing from the formal setting of the optimal tax theory (Mirrlees 1971), the
paper identifies the level of Rawlsianism of some European social planners
starting from the observation of real data and redistribution systems and uses
it to build a metric that allows measuring the degree of (dis)similarity of
the redistribution systems analyzed. It must be considered as a contribution
to the comparative research on the structure and typology of the Welfare
State. In particular we consider the optimal taxation model that combines both
intensive and extensive margins of labor supply, as suggested by Saez (2002)
in order to assess the degree of decommodification of seven European welfare
systems. We recover the shape of the social welfare function implicit in
tax-benefit systems by inverting the model on actual effective tax rates, as
if existing systems were optimal according to some Mirrleesian social planner.
Actual distributions of incomes before and after redistribution are obtained
using a pan-European tax-benefit microsimulation model. Results are discussed
in the light of standard classifications of welfare regimes in Europe. There
appears to be a clear coincidence of high decommodification willingness and
high Rawlsianism in the Scandinavian, social-democratically influenced welfare
states (Denmark). There is an equally clear coincidence of low
decommodification willingness and utilitarianism in the <i>Anglo-Saxon
liberal</i> model (UK) and in the <i>Southern European</i> welfare states
(Italy and Spain). Finally, the <i>Continental European</i> countries
(Finland, Germany and France) group closely together in the middle of the
scale, as corporatist and etatist. |