Showing 1 - 9 of 9
We study the extent to which people are misinformed about their relative position in the income distribution and the effects on preferences for redistribution of correcting faulty beliefs. We implement a tailor-made survey in Sweden and document that a vast majority of Swedes believe that they...
Persistent link: https://www.econbiz.de/10010944999
We show theoretically that the poor can benefit from price changes induced by higher income inequality. As the number … price of rice and Big Mac hamburgers, we confirm the relationship between inequality and purchasing power of the poor, and …
Persistent link: https://www.econbiz.de/10011272722
inequality increased. We introduce new ways of approximating the effects of international flows and find that the recent increase … in Swedish wealth inequality is likely to be larger than what official estimates suggest. …
Persistent link: https://www.econbiz.de/10005771090
This paper reviews the literature on economic inequality and trust. Cross-country studies, within-country studies, and … experiments all suggest that economic inequality exerts a negative influence on trust. Four mechanisms are proposed to explain the … negative relationship: social ties (or networks), inference on social relationships (to see inequality as a signal of …
Persistent link: https://www.econbiz.de/10005029285
The analysis provides a new explanation for two widespread problems concerning European unemployment policy: the disappointingly small effect of many past reform measures on unemployment, and the political difficulties in implementing more extensive reform programs. We argue that the heart of...
Persistent link: https://www.econbiz.de/10005419509
We present new evidence on the influence of income inequality on generalized trust. Using individual panel data from … relationship between income inequality and trust is particularly strong for people with a strong aversion against income …
Persistent link: https://www.econbiz.de/10005645359
The objective of this paper is to study the dynamics of the wealth distribution over the path of economic development. More specifically, we are interested in distinguishing between changes which seem to be country specific and characteristics shared by all countries. A historical account of the...
Persistent link: https://www.econbiz.de/10005645360
equal outcomes, while the feedback from inequality to trust is ambiguous. Using a structural equations model estimated on a …. We conclude that while trust facilitates welfare state policies that may reduce net inequality, this decrease in … inequality does not increase trust. …
Persistent link: https://www.econbiz.de/10010818514
This paper builds a theory of the shape of the distribution of total-factor productivity (TFP) across countries. The data on productivity suggests vast differences across countries, and arguably even has “twin peaks”. The theory proposed here is consistent with vast differences in long-run...
Persistent link: https://www.econbiz.de/10008675722