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Should education be subsidized for the purpose of redistribution? The usual argument against subsidies to education … the absence of a strive for redistribution, the market generates the efficient level of investment in human capital. When … there is a demand for redistribution, the general equilibrium effects on relative wages might make a subsidy to education an …
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; redistribution ; welfare …
Persistent link: https://www.econbiz.de/10009665381
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This paper develops a dynamic framework to analyze the political sustainability of economic reforms in developing countries. First, we demonstrate that economic reforms that are proceeding successfully may run into a political impasse, with the reform's initial success having a negative impact...
Persistent link: https://www.econbiz.de/10010249669
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/10011508116
It is standardly assumed that individuals adjust to perceived unfairness or norm violations in precisely the same area or relationship where the original offense has occurred. However, grievances over being exposed to injustice may have even broader consequences and also spill over to other...
Persistent link: https://www.econbiz.de/10008697792
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This paper studies how prefunding public pensions can improve policy outcomes when short-sighted governments cannot commit. We focus on sustainable plans, where optimal nonlinear pensions are not reneged on by sequential governments. Prefunding pensions is a commitment mechanism. It implies...
Persistent link: https://www.econbiz.de/10011405644
Building on the existing literature that examines the extent of redistribution in the Social Security system as a whole … inequality. Second, we find that this result is driven largely by the lack of redistribution across the middle and upper part of … distribution. Third, in cases where redistribution does occur, we find it is not efficiently targeted: many high income households …
Persistent link: https://www.econbiz.de/10003824985