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We illustrate a novel informational feature of education, which the government may utilize. Discretionary decisions of individuals to acquire education may serve as an additional signal (to earned labor income) on the underlying unobserved innate earning ability, thereby mitigating the...
Persistent link: https://www.econbiz.de/10010261166
We consider the notion of welfare stigma à la Besley and Coate (1992b). This stigma is attributed to welfare claimants by society when they are perceived as undeserving in the sense that they falsely claim to be eligible for welfare benefits. However, due to imperfect information, this stigma...
Persistent link: https://www.econbiz.de/10010264364
We examine in how far people’s experiences of income inequality affect their preferences for redistribution. We use … several large nationally representative datasets to provide evidence that people who have experienced more inequality while … growing up are less in favor of redistribution, after controlling for income, demographics, unemployment experiences and …
Persistent link: https://www.econbiz.de/10011584950
The relationship between inequality and redistribution is usually studied under the assumption that the government … expenditure). We study the effects of inequality on the size (and structure) of redistributive programs in both perfectly … case and that in the latter case an increase in inequality can be associated with a fall in the tax rate. We find also that …
Persistent link: https://www.econbiz.de/10010261071
In this paper, we revisit the association between happiness and inequality. We argue that the interaction between the … of utility, and lower preferred levels of income redistribution. In societies with a low level of actual social mobility …, income inequality is perceived more negatively with increased perceived fairness, due to the need for unexpected policy …
Persistent link: https://www.econbiz.de/10010274890
appears to have caused a high degree of economic inequality, and democratization in the form of franchise expansion has … typically led to an expansion in redistribution, at least in the small sample of episodes studied. Similarly, and more … between other measures of democracy, based on civil liberties and political rights, and inequality. The transition experience …
Persistent link: https://www.econbiz.de/10010314955
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 … requires more resources, which lowers pre-tax and post-tax income inequality as well as growth. Using consistently defined …
Persistent link: https://www.econbiz.de/10010315431
The relationship between inequality and redistribution is usually studied under the assumption that the government … expenditure). We show that inequality may have no discernible effect on the size of redistributive programs. …
Persistent link: https://www.econbiz.de/10010315857
fractionalization and group antagonism reduce the support for redistribution. Whereas within group inequality increases support for … redistribution, inequality between groups have the opposite effect. All these results hold even if a poor group is in majority. Using … increases and between group inequality decreases redistribution. …
Persistent link: https://www.econbiz.de/10010316006
inequality, such as differences in effort, luck, or opportunities. We study how fairness views and the extent of redistribution …The steady increase in inequality over the past decades has revived a lively debate about what can be considered a fair … distribution of income. Public support for the extent of redistribution typically depends on the perceived causes of income …
Persistent link: https://www.econbiz.de/10011698730