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Consider a union of atomistic member states, each faced with idiosyncratic business-cycle shocks. Private cross-border risk-sharing is limited, giving a role to a federal unemployment-based transfer scheme. Member states control local labor-market policies, giving rise to a trade-off between...
Persistent link: https://www.econbiz.de/10012316758
As massive rural residents leave their home countryside for better employment, migration has profound effects on income distributions such as rural-urban income gap and inequalities within rural or urban areas. The nature of the effects depends crucially on who are migrating and their migrating...
Persistent link: https://www.econbiz.de/10003970569
A society that believes wealth to be determined by random "luck", rather than by merit, demands more redistribution. We … ground acceleration registered during each shock with survey data about individual opinions on redistribution we show that … inequalities should be levelled by redistribution. The shocks, however, are not all alike. We find that only the last three shakes …
Persistent link: https://www.econbiz.de/10012035630
strengthens the preference for redistribution. Labor mobility frictions are instrumental in this mechanism. …
Persistent link: https://www.econbiz.de/10013414595
We suggest that stabilizing the baseline income can make low-wage workers more tolerant towards high income earners. We present evidence of this attitude in the UK by exploiting the introduction of the National Minimum Wage (NMW), which institutionally sets a baseline pay reducing the risk of...
Persistent link: https://www.econbiz.de/10014266908
We decompose the redistributive effect of direct taxes into vertical, horizontal, and reranking components applying the methods of Urban and Lambert (Public Finance Review, 2008). In the first such application to the UK, and using yearly data covering 1977-2020, we find that redistributive...
Persistent link: https://www.econbiz.de/10014423792
Using panel data for a maximum of 109 countries over the years 1976-2000, we empirically analyze the impact of decentralization on the occurrence of transnational terror. Our results show that expenditure decentralization reduces the number of transnational terror events in a country, while...
Persistent link: https://www.econbiz.de/10003866216
The effectiveness of public funds in increasing public employment has long been a question on public and labor economists' minds. In most federal countries local governments employ large fractions of the working population, meaning that a tool for stimulating local public employment can...
Persistent link: https://www.econbiz.de/10009006942
on pre-government income inequality hints at substantial disincentive effects. -- social benefits ; redistribution …
Persistent link: https://www.econbiz.de/10009007489
Income mobility is often thought to equalize permanent incomes and thereby to improve social welfare. The welfare analysis of mobility often fails, however, to account for the cost of the variability of periodic incomes around permanent incomes. This paper assesses the net welfare benefit of...
Persistent link: https://www.econbiz.de/10009308021