Okuzeka
Economics vocabulary · Development and Inequality

Redistribution

Meaning in economics, with examples

/ˌriːdɪstrɪˈbjuːʃn/nounCommon term

In economics, redistribution means: The transfer of income or wealth from some groups to others, mainly from richer to poorer people, through taxes, benefits and public services.

In Turkish: yeniden dağıtım, gelirin yeniden dağılımı

How it is used

A central topic in public finance and politics: how much redistribution a country should do, and whether it weakens incentives to work. The main tools are progressive taxes, transfer payments, pensions and free public services. The verb is redistribute.

Example sentences

  1. In the Nordic countries, taxes and benefits achieve a large redistribution of income.

  2. Economists debate how much redistribution is possible without harming growth.

Common collocations

  • income redistribution
  • redistribution of wealth
  • redistribution through taxes
  • redistributive policies
  • income distributionHow a country's total income is shared out among its people or households, from the poorest to the richest.
  • progressive taxA tax that takes a larger share of income from people who earn more, usually through higher rates on higher income brackets.
  • inequalityThe unequal distribution of income, wealth or opportunities between people or groups in a society, or between countries.
  • taxationThe system by which a government collects money from people and businesses through taxes on income, profits, spending and property.
  • Gini coefficientA number from 0 to 1 that sums up income inequality in a country: 0 means everyone has the same income, and 1 means one person has all of it.

More terms: Development and Inequality

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This page explains English vocabulary for learners. It is not financial advice.