Corbae, Dean; D'Erasmo, Pablo; Kuruscu, Burhanettin - In: Journal of Monetary Economics 56 (2009) 1, pp. 43-61
This paper uses a dynamic political economy model to evaluate whether the observed rise in wage inequality and decrease in median to mean wages can explain some portion of the relative increase in transfers to low earnings quintiles and relative increase in effective tax rates for high earnings...
