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This paper discusses problems with wage subsidy proposals, specifically focusing on the proposal in Rewarding Work by Edmund Phelps. It shows that the book uses one price theory to argue that the whole benefit of a wage subsidy will go to workers (rather than firms or consumers), but it uses an...
Persistent link: https://www.econbiz.de/10008563551
This paper explores if more generous social spending polices in fact lead to less income inequality, or if redistributive outcomes are offset by behavioral disincentive effects. To account for the inherent endogeneity of social policies with regard to inequality levels, I apply the System GMM...
Persistent link: https://www.econbiz.de/10008564705
Theoretical work based on social identity theory and in-group favoritism predicts that increased population diversity (e.g., due to immigration) reduces support for redistributive public policies. In this article, we add to the empirical literature testing this prediction in three ways. First,...
Persistent link: https://www.econbiz.de/10010896168
in the distribution of market income as well as shifts in the effectiveness of public redistribution mechanisms. We find … decreasing effectiveness of the public mechanisms of income redistribution are the main explanatory factors for the development …
Persistent link: https://www.econbiz.de/10010896223
This paper is prepared as a chapter for the Handbook of Income Distribution, Volume 2 (edited by A. B. Atkinson and F. Bourguignon, Elsevier-North Holland, forthcoming). Like the other chapters in the volume (and its predecessor), the aim is to provide a comprehensive review of a particular area...
Persistent link: https://www.econbiz.de/10010896635
We provide an example that shows that in the Alesina and Angeletos (2005) model one can obtain multiplicity even if luck plays no role in the economy. Thus, it is not critical that the noise to signal ratio be increasing in taxes, or that desired taxes are increasing in the noise to signal ratio.
Persistent link: https://www.econbiz.de/10010897816
We investigate the motives of pro-social behavior in collective decisions in an economic experiment. It compares individual behavior in private and collective decisions in a unified experimental setup. Subjects are given an individual endowment and have to decide how much of it to donate to...
Persistent link: https://www.econbiz.de/10010897827
By introducing external consumption habits and Limited Asset Market Participation in an otherwise standard New Keynesian DSGE model we uncover a causality link between limited asset market participation, consumption inequality and macroeconomic volatility. We also obtain that monetary...
Persistent link: https://www.econbiz.de/10010901419
Recent studies of the effectiveness of privatisation programmes in the water and sanitation sector have highlighted the diversity of experiences, especially with respect to the distributional consequences of reforms. This study of water and sanitation privatisation programmes in the city and...
Persistent link: https://www.econbiz.de/10010691814
Building on a theoretical model we test the hypothesis that effort choices and preferences for redistribution are … preferences for redistribution and effort choices simultaneously. While respondents with stronger preferences for redistribution … redistribution choices even increase in imposed effort.Those with higher ability are willing to help the needy if earning income …
Persistent link: https://www.econbiz.de/10010762085