placestats

Redistribution vs. Rule of law

Holds up after adjusting for income

Across 45 countries, Redistribution and Rule of law rise and fall together at r = +0.57 (on a scale from −1 to +1, where 0 means no link). Comparing only countries with similar income (GDP per person) shrinks it to +0.21 (q = 0.035, allowing for the many pairs tested). Much of the first figure is that both measures rise with national income, but a weak positive link remains.

Comparing countries across the middle half of redistribution, 23.2% to 38.1% reduction in the Gini, rule of law is better by 0.603 points at the top of that range than the bottom. Comparing only countries with similar national income, the gap is 0.204 points.

Link before adjusting (r)+0.572p = 4.0e-5 · 45 countries
After adjusting for national income+0.209p = 0.172 · likely range [-0.09, +0.48]
p, allowing for regions0.002standard error 0.042 · 7 regions
Check for luck (q)0.035across 12,497 pairs

How to read these.r runs from −1 (one goes up as the other goes down) to +1 (they rise together), and 0 means no link. Adjusting for national income means comparing countries with the same GDP per person, so differences in wealth can’t explain the link. Income is used in percentage terms, since an extra $1,000 means more to a poor country than to a rich one. p is how likely a link this strong would be if there were really none. Below 0.05 means it is unlikely to be chance. Very small values are written in short form: 1.1e-32 means a decimal point followed by 31 zeros and then 11, so very close to zero. The likely range is where the true figure probably lies, and a range that crosses zero means the link could easily be chance. Countries in the same region tend to resemble each other, so the third figure allows for that, which gives a fairer p. The standard error is the typical size of the error in r. Finally, testing this many pairs means some will look strong by luck alone. A q below 0.05 means this link is unlikely to be one of those.

Redistribution · % reduction in the Ginilink with income +0.50 · moderate
Rule of law · index (approx. -2.5 to 2.5)link with income +0.72 · high

“Link with income” is how closely each measure tracks GDP per person across countries, from −1 to +1.

Every country as a dot

Redistribution · % reduction in the Gini →Rule of law · index (approx. -2.5 to 2.5) →2.67%48.3%-1.162.02Australia: 27.7% reduction in the Gini, 1.47 index (approx. -2.5 to 2.5)Austria: 41.4% reduction in the Gini, 1.68 index (approx. -2.5 to 2.5)Belgium: 47.7% reduction in the Gini, 1.28 index (approx. -2.5 to 2.5)Bulgaria: 26% reduction in the Gini, -0.0333 index (approx. -2.5 to 2.5)Brazil: 13.8% reduction in the Gini, -0.446 index (approx. -2.5 to 2.5)Canada: 29.3% reduction in the Gini, 1.46 index (approx. -2.5 to 2.5)Switzerland: 21.2% reduction in the Gini, 1.76 index (approx. -2.5 to 2.5)Chile: 8.68% reduction in the Gini, 0.691 index (approx. -2.5 to 2.5)China: 6.22% reduction in the Gini, -0.579 index (approx. -2.5 to 2.5)Costa Rica: 12.6% reduction in the Gini, 0.617 index (approx. -2.5 to 2.5)Czechia: 43.5% reduction in the Gini, 1.19 index (approx. -2.5 to 2.5)Germany: 38.7% reduction in the Gini, 1.63 index (approx. -2.5 to 2.5)Denmark: 37.5% reduction in the Gini, 2 index (approx. -2.5 to 2.5)Spain: 34.4% reduction in the Gini, 0.932 index (approx. -2.5 to 2.5)Estonia: 33.5% reduction in the Gini, 1.49 index (approx. -2.5 to 2.5)Finland: 47.2% reduction in the Gini, 2.02 index (approx. -2.5 to 2.5)France: 42.2% reduction in the Gini, 0.979 index (approx. -2.5 to 2.5)United Kingdom: 29.7% reduction in the Gini, 1.27 index (approx. -2.5 to 2.5)Greece: 36.9% reduction in the Gini, 0.298 index (approx. -2.5 to 2.5)Croatia: 33.1% reduction in the Gini, 0.377 index (approx. -2.5 to 2.5)Hungary: 29.4% reduction in the Gini, 0.192 index (approx. -2.5 to 2.5)India: 2.67% reduction in the Gini, -0.0392 index (approx. -2.5 to 2.5)Ireland: 41.2% reduction in the Gini, 1.59 index (approx. -2.5 to 2.5)Iceland: 35.7% reduction in the Gini, 1.63 index (approx. -2.5 to 2.5)Israel: 23.2% reduction in the Gini, 0.6 index (approx. -2.5 to 2.5)Italy: 36.2% reduction in the Gini, 0.619 index (approx. -2.5 to 2.5)Japan: 34.1% reduction in the Gini, 1.51 index (approx. -2.5 to 2.5)Korea, Rep.: 18.2% reduction in the Gini, 1.12 index (approx. -2.5 to 2.5)Lithuania: 29.7% reduction in the Gini, 1.37 index (approx. -2.5 to 2.5)Luxembourg: 35.7% reduction in the Gini, 1.76 index (approx. -2.5 to 2.5)Latvia: 28.1% reduction in the Gini, 1.09 index (approx. -2.5 to 2.5)Mexico: 3.77% reduction in the Gini, -1.15 index (approx. -2.5 to 2.5)Netherlands: 34.2% reduction in the Gini, 1.71 index (approx. -2.5 to 2.5)Norway: 39.5% reduction in the Gini, 1.95 index (approx. -2.5 to 2.5)New Zealand: 28.7% reduction in the Gini, 1.67 index (approx. -2.5 to 2.5)Poland: 41.9% reduction in the Gini, 0.577 index (approx. -2.5 to 2.5)Portugal: 36.5% reduction in the Gini, 1.07 index (approx. -2.5 to 2.5)Romania: 38.1% reduction in the Gini, 0.371 index (approx. -2.5 to 2.5)Russian Federation: 27% reduction in the Gini, -1.16 index (approx. -2.5 to 2.5)Slovak Republic: 48.3% reduction in the Gini, 0.561 index (approx. -2.5 to 2.5)Slovenia: 42.4% reduction in the Gini, 0.979 index (approx. -2.5 to 2.5)Sweden: 33.1% reduction in the Gini, 1.73 index (approx. -2.5 to 2.5)Turkiye: 18.6% reduction in the Gini, -0.843 index (approx. -2.5 to 2.5)United States: 22.1% reduction in the Gini, 0.962 index (approx. -2.5 to 2.5)South Africa: 12.8% reduction in the Gini, 0.0177 index (approx. -2.5 to 2.5)BELCHECHLCHNFININDKORMEXNORPOLRUSSVK

best-fit line line after adjusting

Four ways to measure the link

MethodrpCountries
Standard (Pearson), not adjusted+0.5724.0e-545
By rank (Spearman), not adjusted+0.4500.00245
Standard (Pearson), adjusted for national income+0.2090.17245
By rank (Spearman), adjusted for national income+0.0860.58145

The rank version uses only each country’s place in line, from lowest to highest, so a few extreme countries count for less. The adjusted and unadjusted versions use the same 45 countries: those that report both measures and GDP per person. So the gap between them comes from the adjustment, not from a change in which countries are counted. Drop in the size of r after adjusting: +0.363 (a minus sign means it grew).

How solid is it?

Leaving out one country at a time, r ranges from +0.147 (without MEX) to +0.238 (without CHL). The bar above shows that range on a scale from −1 to +1, with the solid line at the full result. The single country that moves r most: MEX (-0.062).

Within each region

Countries are not separate, unrelated cases, and neighbors share a lot. A link that holds inside each region is far more believable than one that shows up only when comparing regions.

nr
Europe & Central Asia31+0.35

By income third

If the link shows up only in the richest third of countries, it is a feature of rich countries, not a general pattern.

nr
Poorest third15+0.37
Middle third15+0.16
Richest third15+0.38

By largest religious group

Countries grouped by a label they share, such as main religion, rather than by a number. Groups of fewer than twelve countries are not shown. These groups differ in income, region and history all at once. So a gap between them is a place to start asking questions, not an answer.

nr
Christians36+0.16

Without outliers (countries far outside the middle half of countries on either measure, by more than one and a half times the width of that middle half): r = +0.209 after dropping 0 countries.

Two series, one country

Both measures over the years for one country you pick. The two charts are stacked so they share only the years along the bottom.

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Over time, within countries

Everything above compares countries with each other at one moment. This section compares each country only with itself over 14years. So a link here can’t come from anything about a country that stays the same, such as its history, geography, institutions or culture.

Within countries over time, there is no link that is clearly more than chance (r = -0.148, comparing each country only with itself over the years, and each year only with the same year elsewhere). Whatever the cross-country picture shows, countries whose redistribution moved did not tend to see their rule of law move with it.

Across countries (adjusted)+0.209for comparison
Within countries-0.140each country vs itself
…and vs the same year elsewhere-0.148q = 0.612 · 39 countries
Year-on-year changes-0.096q = 0.360
Read with care.
  • Almost all of this indicator's variation is between countries, not within them, so the within-country estimate rests on a small part of the data.

442 country-years (one country in one year), 39 countries, 2011–2024, about 11 years each on average. Share of the variation that happens within countries over time: 4% for Redistribution, 3% for Rule of law. The margins of error allow for each country appearing many times, and for each year’s value being close to the year before.

Year-to-year changes are a cautious test, not a final answer. Looking only at changes from one year to the next removes each country’s own trends. But it also makes measurement mistakes louder, which pulls the results toward zero. A near-zero result here is weak evidence of no link, not proof.

With one measure years behind the other

0.30−0.3-100+7years Rule of law trails Redistribution →lag -10: r = 0.118 (n = 412)lag -9: r = 0.069 (n = 442)lag -8: r = 0.057 (n = 442)lag -7: r = -0.007 (n = 442)lag -6: r = -0.035 (n = 442)lag -5: r = -0.068 (n = 442)lag -4: r = -0.125 (n = 442)lag -3: r = -0.168 (n = 442)lag -2: r = -0.167 (n = 442)lag -1: r = -0.148 (n = 442)lag +0: r = -0.148 (n = 442)lag +1: r = -0.112 (n = 441)lag +2: r = -0.128 (n = 416)lag +3: r = -0.162 (n = 371)lag +4: r = -0.144 (n = 338)lag +5: r = -0.174 (n = 286)lag +6: r = -0.229 (n = 249)lag +7: r = -0.238 (n = 217)

Same year (lag 0): -0.148. A peak away from zero does not show which comes first. These series change slowly — this year’s value is close to last year’s. That makes the curve smooth and nearly symmetric, whatever produced the data. Even a sharp peak at one lag (a gap of some years) would not prove that one measure changes the other.

This curve peaks at the edge of the window (lag +7), so it is still drifting where the search stops. That pattern usually reflects a slow trend left over in the data, not a link with real timing. The peak value should not be read as the “true” link at the right lag.

The data


% reduction in the Gini

index (approx. -2.5 to 2.5)
Years
Slovak Republic SVK48.3%0.5612023, 2024
Belgium BEL47.7%1.282023, 2024
Finland FIN47.2%2.022023, 2024
Czechia CZE43.5%1.192023, 2024
Slovenia SVN42.4%0.9792023, 2024
France FRA42.2%0.9792023, 2024
Poland POL41.9%0.5772023, 2024
Austria AUT41.4%1.682023, 2024
Ireland IRL41.2%1.592023, 2024
Norway NOR39.5%1.952022, 2024
Germany DEU38.7%1.632022, 2024
Romania ROU38.1%0.3712023, 2024
Denmark DNK37.5%22022, 2024
Greece GRC36.9%0.2982023, 2024
Portugal PRT36.5%1.072023, 2024

OECD databases as named on each indicator: PISA, Social Expenditure Database (SOCX), Income Distribution Database, Development Assistance Committee statistics, Family Database, Government at a Glance, Corporate Tax Statistics, employment and environment statistics
Kaufmann, D. and A. Kraay, Worldwide Governance Indicators, World Bank

Sources

Redistribution

Reduction in the Gini coefficient from taxes and transfers

OECD · via Our World in Data · CC BY 4.0 (OECD terms and conditions) · updated annual, except the snapshots noted per indicator · comparable from 2011 only

The Gini before taxes and payments minus the Gini after them, as a share of the first. It shows how much of the inequality produced by the market the government removes. It is built from the before-tax Gini above, so their pair is built from the same numbers and flagged. No "better" direction is set: a country may redistribute little because its market incomes are already equal.

Rule of law

Rule of Law (estimate)

World Bank · CC BY 4.0 · updated annual

How this was computed

Data used: most recent value in 2010-2025; values come from 2011–2024. To adjust for income, each measure is first predicted from GDP per person (in percentage terms, on a log scale) with a straight-line fit. Only what is left over is then compared. This is called a partial correlation. The line is drawn the standard way (ordinary least squares), which picks the line that comes closest to all the countries at once. The error margins allow for countries in the same region resembling each other, using 7 World Bank regions. The q-value corrects for testing all 12,497 pairs at once, using the Benjamini–Hochberg method. Underlying data last updated DYB 2024. How the country data works · explore Redistribution and Rule of law

This page shows that two measures go together. It does not show that Redistribution changes Rule of law, or the reverse. These figures also describe countries, not individual people. See the ecological fallacy.

More links with Redistribution or Rule of law