the politically important core of society, even though income inequality may increase for society as a whole. In the model …

and benefits of redistribution through taxes, land reform or public schooling: such policies simultaneously depress …’ rent-seeking abilities, as well as with the gap between rich and poor. It is not income inequality per se that matters …, however, but inequality in the relative distribution of earning and political power. For each of the three channels of …

costs and benefits of redistribution are generally of the same order of magnitude, resulting in reasonable values for the …

employment rates and wages. We estimate that 38 percent of households are Modern and that the participation rate of women in …

across regions and on the resulting location of industrial activity. In particular, it studies what happens when wages in …