Lindqvist, Erik - Institutet för Näringslivsforskning (IFN) - 2008
This paper models the interaction between individuals' identity choices and redistribution. Both redistributive polices …, redistribution is highest when society is ethnically homogenous, but the effect of ethnic diversity on redistribution is not … necessarily monotonic. Second, when income inequality is low, an increase in income inequality might induce the poor to identify …