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, equilibrium wage dispersion is necessary for the economy to approximate efficiency. Without wage dispersion, workers do not search …
Persistent link: https://www.econbiz.de/10005124074
There are many well developed theories which explain why governments redistribute income. There are very few theories, however, which can explain why this redistribution often takes an inefficient form. In this paper we develop a theory of why redistribution is made inefficiently. Inefficient...
Persistent link: https://www.econbiz.de/10005067380