The size of redistribution in OECD countries: does it influence wage inequality?

The paper analyses the impact of income redistributive policies, as measured as the difference between the Gini index prior to tax and transfers and the Gini index after the tax and transfers, on wage inequality. The results stemming from the regression model on OECD data indicate that the amount of "risk insurance" provided by welfare institutions through redistribution, may feed back on the labour market institutions and thus on wage inequality