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Even relatively poor people oppose high rates of redistribution because of the anticipation that they, or their children, may move up the income ladder. This ‘Prospect of Upward Mobility’ (POUM) hypothesis is commonly advanced to explain why democracies do not engage in large-scale...
Persistent link: https://www.econbiz.de/10005662178
International surveys reveal wide differences between the views held in different countries concerning the causes of wealth or poverty and the extent to which people are responsible for their own fate. At the same time, social ethnographies and experiments by psychologists demonstrate...
Persistent link: https://www.econbiz.de/10005504312
This paper surveys major empirical regularities concerning changes in earnings inequality in Europe and the US over the … possible rationale for recent inequality developments. …
Persistent link: https://www.econbiz.de/10005792213
Empirical studies of intergenerational social mobility have found that women are more mobile than men. To explain this finding, we describe a model of multi-trait matching and inheritance, in which individuals’ attractiveness in the marriage market depends on their market and non-market...
Persistent link: https://www.econbiz.de/10009320404
We investigate redistributive taxation in a political economy experiment and determine how different patterns of social mobility affect the choices of redistributional taxes. In the absence of social mobility, voters choose tax rates that are very well in line with the prediction derived in the...
Persistent link: https://www.econbiz.de/10008607502
The poor favour redistribution and the rich oppose it, but that is not all. Social mobility may make some of today’s poor into tomorrow’s rich and since redistributive policies do not change often, individual preferences for redistribution should depend on the extent and the nature of social...
Persistent link: https://www.econbiz.de/10005114467
We propose a dynastic model in which individuals are born in an educated or uneducated environment that they inherit from their parents. We study the role of social networks on the correlation in the parent-child educational status independent of any parent-child interaction. We show that the...
Persistent link: https://www.econbiz.de/10011084558
positive correlation between child labour, fertility and inequality across countries of similar income per capita. The model …, when regulations were introduced after a period of rising wage inequality, and coincided with rapidly declining fertility …
Persistent link: https://www.econbiz.de/10005067344
greater inequality. To investigate this we construct a dynamic model of intergenerational education acquisition, fertility …'s (1997) finding of a basically insignificant effect of marital sorting on inequality, we find that increased marital sorting … will significantly increase income inequality. Three factors are central to our findings: a negative correlation between …
Persistent link: https://www.econbiz.de/10005661607
’ 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 …-country differences in inequality permanent, or gradually narrowing? Equivalently, is there convergence not just in the first moment of …
Persistent link: https://www.econbiz.de/10005123982