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redistribution creates more post-tax inequality. The welfare state will encounter severe risks when free migration of people, goods …
Persistent link: https://www.econbiz.de/10013249363
imperfections make future earning a function of current resources. Combined with the politics of redistribution this creates the … potential for multiple steady-states, with mutually reinforcing high inequality and low redistribution, or vice-versa. Temporary …
Persistent link: https://www.econbiz.de/10013210599
This paper argues that the social nature of humans, absent from the standard economic model, is crucial to understand our large modern social states and why concerns about inequality are so pervasive. A social solution arises when a situation is resolved at the group level (rather than the...
Persistent link: https://www.econbiz.de/10014089529
Data for the United States and countries in Western Europe indicate a negative correlation between the dependency ratio and labor tax rates and the generosity of social transfers, after controlling for other factors that influence the size of the welfare state. This is despite the increased...
Persistent link: https://www.econbiz.de/10013310543
The extent of taxation and redistribution policy is generally determined as a political-economy equilibrium by a … burden and less redistribution than would be the case with no immigration, even though migrants (naturally) join the pro …-tax/transfer coalition. Data on 11 European countries over the period 1974 to 1992 are consistent with the implications of the theory: a …
Persistent link: https://www.econbiz.de/10013226170
This paper analyzes the relationship between brain drain, human capital accumulation and individual net incomes in the presence of a redistributional tax policy, credit market constraints, administrative costs of tax collection, and lack of government commitment. We characterize how decreasing...
Persistent link: https://www.econbiz.de/10013232920
The extent of taxation and redistribution policy is generally determined at a political-economy equilibrium by a … tax burden and less redistribution than without migration, even though the migrants (naturally) join the pro-tax cum …
Persistent link: https://www.econbiz.de/10013310136
Migration of young workers (as distinct from retirees), even when driven in by the generosity of the welfare state, slows down the trend of increasing dependency ratio. But, even though low-skill migration improves the dependency ratio, it nevertheless burdens the welfare state. Recent studies...
Persistent link: https://www.econbiz.de/10013213052
This paper provides overview of recent work on migration and welfare state tax policies: 1. I survey the literature on the tax burden of migration. 2. I empirically identify the differential effect of the generosity of the welfare state on the skill composition of immigrants across the two...
Persistent link: https://www.econbiz.de/10013077641
This paper studies the optimal redistribution of income inequality in a model with search and matching frictions in the … workers and heterogeneous firms. The optimal redistribution in this model, which is associated with the constrained efficient …
Persistent link: https://www.econbiz.de/10013105002