In both cases, it is assumed that taxes and transfers do not alter the labour supply (i.e. behavioural effects are not included). This section analyses the possible interrelations between the countries' redistributive capacities in a broad sense, reflected through public social spending, and their existing production structures and achievements in terms of equality. In figure 1.8, labour productivity is plotted along the y-axis as a proxy for the knowledge-intensiveness of the production structure, since productivity is an outgrowth of the technological capacities disseminated across the production fabric. Plotted along the x-axis is public social spending as a percentage of GDP, which is a proxy for the effort made by social institutions to correct inequalities and protect vulnerable sectors.