Yes, income transfers do make a difference in Gini indices, and can make a big difference. (,6 before taxes and income transfers and medical insurance, ,45 after these are taken into account in the U.S,) But the big picture doesn't change all that much. A .45 is "Agrarian" unequal but it is closer to an agrarian than to welfare state number.
The presence of some "low Gini" states in Africa and in other poor countries creates the interesting possibility of doing the sort of analysis Wilkinson discussed on those poor countries, Does a poor country with a low Gini index have fewer social problems than a poor country with a high Gini index?
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timeasmymeasure
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Date: 2011-11-04 08:20 pm (UTC)The presence of some "low Gini" states in Africa and in other poor countries creates the interesting possibility of doing the sort of analysis Wilkinson discussed on those poor countries, Does a poor country with a low Gini index have fewer social problems than a poor country with a high Gini index?