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In this paper we revisit the relationship between democracy, redistribution and inequality. We first explain the … theoretical reasons why democracy is expected to increase redistribution and reduce inequality, and why this expectation may fail … such activities, thus exacerbating inequality among a large part of the population. We then survey the existing empirical …
Persistent link: https://www.econbiz.de/10012458917
Within developing and newly industrialized countries, rising wage inequality is both common and highly correlated with … model Southern catch-up induces a correlation between rising inequality and export growth. It also induces a shift in trade … patterns that results in skill upgrading and rising inequality in both the South and the North. A rudimentary empirical …
Persistent link: https://www.econbiz.de/10012470273
The paper discusses the consequences for the functioning of different pension systems of various types of socioeconomic changes, mainly demographic developments, variations in productivity growth and changes in real interest rates. Two of the pension systems have exogenous and four have...
Persistent link: https://www.econbiz.de/10012470980
progressivity, noting that optimal taxation theory predicts that growing inequality should increase progressivity. We discuss public …This paper explores the links between two phenomena of the past two decades: striking increase in the inequality of pre …-tax incomes, and the failure of tax-and-transfer progressivity to increase. We emphasize the causal links going from inequality to …
Persistent link: https://www.econbiz.de/10012471193
This paper examines the consequences of social security reform for the inequality of consumption across individuals …. The idea is that inequality is at least in part the result of individual risk in earnings or asset returns, the effects of … which accumulate over time to increase inequality within groups of people as they age. Institutions such as social security …
Persistent link: https://www.econbiz.de/10012471205
reducing inequality. Educated workers in these countries have a much lower birthrate than uneducated workers. Assuming children … effect generates multiple steady-state levels of inequality, suggesting that in some circumstances, temporarily increasing … access to educational opportunities could permanently reduce inequality. Empirical evidence suggests that the fertility …
Persistent link: https://www.econbiz.de/10012471244
greater inequality. To investigate this we construct a dynamic model of intergenerational education acquisition, fertility …'s (1997) finding of a basically insignificant effect of marital sorting on inequality, we find that increased marital sorting … will significantly increase income inequality. Three factors are central to our findings: a negative correlation between …
Persistent link: https://www.econbiz.de/10012471268
In this paper we study the distributional impact of a change from the existing pay-as-you-go Social Security system to one that combines both pay-as-you-go and investment-based elements. Critics of investment-based plans have been concerned that such plans might reduce the retirement income of...
Persistent link: https://www.econbiz.de/10012471284
in skills. Both types of policies have complicated effects on income inequality and social welfare. The first policy … inequality aversion and financing the subsidy is not too distortive …
Persistent link: https://www.econbiz.de/10012471291
What is inequality in health? Are economists' standard tools for measuring income inequality relevant or useful for … measuring it? Does income protect health and does income inequality endanger it? I discuss two different concepts of health … inequality and relate each of them to the literature on the inequality in income. I propose a model in which each individual …
Persistent link: https://www.econbiz.de/10012471653