Over the past few decades, most OECD countries witnessed a widening of the income distribution. This doctoral thesis collects five studies that provide insight into determinants and political and... Show moreOver the past few decades, most OECD countries witnessed a widening of the income distribution. This doctoral thesis collects five studies that provide insight into determinants and political and economic consequences of income inequality and social policy development in affluent countries. The empirical evidence presented in the first study suggests that the decrease of trade union influence is linked to higher levels of earnings inequality within sectors. The second study focuses on trade competition with China, which is associated with a decrease in wage and employment shares for low-skilled workers in manufacturing sectors in OECD countries. The third study finds no robust associations between economic growth and generic measures of income inequality and redistribution. The findings in the fourth study indicate that individuals exposed to increased job risk resulting from technological change prefer higher levels of redistribution. Based on a comparison of short-term social policies to cope with the recession in 2008 and 2009, the last study concludes that welfare states adopt social and unemployment reactive policies that mirror their institutional legacies. Show less
