challenges the two basic functions of the welfare state, redistribution and social insurance when private unemployment insurance … improving by using a redistributive linear income tax if redistribution is initially not too large. We finally derive the … welfare optimal redistribution and unemployment insurance policies. …

In many OECD countries income inequality has risen, but surprisingly redistribution as well. The theory attributes this … partly to the redistributive effect of education spending. In the model income inequality and growth depend in an inverted U …-shaped way on education. To maintain a given level of human capital it is shown that a less efficient schooling technology …