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In this paper we provide a novel justification for the use of minimum wage rules to supplement the optimal tax-and-transfer system. We demonstrate that if labor supply decisions are concentrated along the intensive margin and employment is efficiently rationed, a minimum wage rule can be...
Persistent link: https://www.econbiz.de/10010337632
undermine the political viability of free trade. We show that trade-related redistribution increases the political viability of … free trade in the US. We do so by assessing the causal effect of expected redistribution associated with the US Trade …. We find that a one standard deviation increase in redistribution leads to more than a 3% point increase in the …
Persistent link: https://www.econbiz.de/10010339571
This paper deals with fiscal policy over the business cycle when international financial markets are imperfect. I document evidence that government expenditure tends to be more procyclical the higher is the borrowing cost for a sovereign. Decomposing government expenditure components shows that...
Persistent link: https://www.econbiz.de/10010341002
redistribution policies. The interaction of the two effects has so far not been analyzed in isolation. We find that the direction of … and redistribution levels. …
Persistent link: https://www.econbiz.de/10010365909
and the extent of redistribution in democratic regimes - though such a link does not exist when objective measures of …
Persistent link: https://www.econbiz.de/10010366191
Persistent link: https://www.econbiz.de/10010345601
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/10010350854
This paper develops a dynamic framework to analyze the political sustainability of economic reforms in developing countries. First, we demonstrate that economic reforms that are proceeding successfully may run into a political impasse, with the reform's initial success having a negative impact...
Persistent link: https://www.econbiz.de/10010249669
Persistent link: https://www.econbiz.de/10010253435
We explore the impact of the self-serving bias on the supply and demand for redistribution. We present results from an … experiment in which participants decide on redistribution after performing a real effort task. Dependent on individual … external factors. Participants take two redistribution decisions. First, they choose a supply of redistribution in a situation …
Persistent link: https://www.econbiz.de/10011434294