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The distribution of gross income net of taxes and transfers - or equivalenty consumption - is generally considered a reasonable approximation of the distribution of well-being in the society. One typically observes differing trends in the distribution of gross incomes across countries or within...
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build a framework with entry, imperfect competition, heterogeneous households, and incomplete markets. Recent trends in … restrict competition. Those trends account for 11% to 22% of the increase in income inequality observed between 1989 and 2007 … transition from a high to a low competition environment. These are either the wealthy, or agents with low productivity relative …
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In this paper, we revisit the association between happiness and inequality. We argue that the perceived fairness of the income generation process affects this association. Building on a two-period model of individual life-time utility maximization, we predict that persons with higher perceived...
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