Redistribution and Inequality in a Heterogeneous Society
AbstractThis paper analyses how income redistribution affects inequality in a society in which individuals differ in their earning abilities and their preferences for consumption and leisure. After discussing the shortcomings of various standard approaches, I measure inequality in such a heterogeneous society by the inequality in individuals' so-called equivalent wages. This approach suggests that redistribution tends to reduce inequality by transferring income from high-ability to low-ability individuals, but to increase inequality by transferring income from consumption-loving to leisure-loving individuals. These countervailing effects lead in all my simulations to a U-shaped relationship between redistribution and inequality. Copyright (c) The London School of Economics and Political Science 2008.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by London School of Economics and Political Science in its journal Economica.
Volume (Year): 76 (2009)
Issue (Month): 304 (October)
Contact details of provider:
Postal: Houghton Street, London WC2A 2AE
Phone: +44 (020) 7405 7686
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0013-0427
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- JACQUET, Laurence & VAN DE GAER, Dirk, .
"A comparison of optimal tax policies when compensation or responsibility matter,"
CORE Discussion Papers RP
-2421, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Jacquet, Laurence & Van de Gaer, Dirk, 2011. "A comparison of optimal tax policies when compensation or responsibility matter," Journal of Public Economics, Elsevier, vol. 95(11), pages 1248-1262.
- Laurence Jacquet & Dirk Van de gaer, 2010. "A Comparison of Optimal Tax Policies when Compensation or Responsibility Matter," CESifo Working Paper Series 2997, CESifo Group Munich.
- L. Jacquet & D. Van De Gaer, 2009. "A comparison of optimal tax policies when compensation or responsibility matter," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/615, Ghent University, Faculty of Economics and Business Administration.
- JACQUET, Laurent & VAN DE GAER, Dirk, 2009. "A comparison of optimal tax policies when compensation or responsibility matter," CORE Discussion Papers 2009064, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Bargain, Olivier & Decoster, AndrÃ© & Dolls, Mathias & Neumann, Dirk & Peichl, Andreas & Siegloch, Sebastian, 2011.
"Welfare, labor supply and heterogeneous preferences: evidence for Europe and the US,"
EUROMOD Working Papers
EM5/11, EUROMOD at the Institute for Social and Economic Research.
- Olivier Bargain & André Decoster & Mathias Dolls & Dirk Neumann & Andreas Peichl & Sebastian Siegloch, 2013. "Welfare, labor supply and heterogeneous preferences: evidence for Europe and the US," Social Choice and Welfare, Springer, vol. 41(4), pages 789-817, October.
- Bargain, Olivier & Decoster, André & Dolls, Mathias & Neumann, Dirk & Peichl, Andreas & Siegloch, Sebastian, 2011. "Welfare, Labor Supply and Heterogeneous Preferences: Evidence for Europe and the US," IZA Discussion Papers 6102, Institute for the Study of Labor (IZA).
- Bargain, Olivier & Neuman, Dirk & Decoster, André & Peichl, Andreas & Dolls, Mathias & Siegloch, Sebastian, 2011. "Welfare, labor supply and heterogeneous preferences: evidence for Europe and the US," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/323863, Katholieke Universiteit Leuven.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.