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Incorporating affirmative action into the welfare state

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  • Blumkin, Tomer
  • Margalioth, Yoram
  • Sadka, Efraim
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    Abstract

    In this paper, we discuss a novel aspect of affirmative action policy. We examine its redistributive role, asking whether in an egalitarian society, supplementing the tax-transfer system with an affirmative action policy would enhance social welfare. We demonstrate that affirmative action could be a desirable policy tool even if racial discrimination does not exist in the labor market.

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    File URL: http://www.sciencedirect.com/science/article/B6V76-4WSRDX9-1/2/ced7d827a1e58a69874b4932fb9b33e6
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Public Economics.

    Volume (Year): 93 (2009)
    Issue (Month): 9-10 (October)
    Pages: 1027-1035

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    Handle: RePEc:eee:pubeco:v:93:y:2009:i:9-10:p:1027-1035

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    Web page: http://www.elsevier.com/locate/inca/505578

    Related research

    Keywords: Affirmative action Optimal taxation Tagging;

    References

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    1. William Darity Jr & Dania Frank, 2003. "The Economics of Reparations," American Economic Review, American Economic Association, vol. 93(2), pages 326-329, May.
    2. Roland G. Fryer, Jr. & Glenn C. Loury, 2005. "Affirmative Action and Its Mythology," NBER Working Papers 11464, National Bureau of Economic Research, Inc.
    3. Coate, S. & Loury, G.C., 1992. "Will Affirmative Action Policies Eliminate Negative Stereotypes?," Papers 3, Boston University - Department of Economics.
    4. Diamond, P., 1980. "Income taxation with fixed hours of work," Journal of Public Economics, Elsevier, vol. 13(1), pages 101-110, February.
    5. Bloch, Farrell, 1994. "Antidiscrimination Law and Minority Employment," University of Chicago Press Economics Books, University of Chicago Press, edition 0, number 9780226059839, September.
    6. Kenneth J. Arrow, 1998. "What Has Economics to Say about Racial Discrimination?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 91-100, Spring.
    7. Fryer, Roland, 2009. "Implicit Quotas," Scholarly Articles 2940155, Harvard University Department of Economics.
    8. Sadka, Efraim, 1976. "On Income Distribution, Incentive Effects and Optimal Income Taxation," Review of Economic Studies, Wiley Blackwell, vol. 43(2), pages 261-67, June.
    9. Joseph E. Stiglitz, 1982. "Self-Selection and Pareto Efficient Taxation," NBER Working Papers 0632, National Bureau of Economic Research, Inc.
    10. Jimmy Chan & Erik Eyster, 2003. "Does Banning Affirmative Action Lower College Student Quality?," American Economic Review, American Economic Association, vol. 93(3), pages 858-872, June.
    11. Craig Brett, 2007. "Optimal nonlinear taxes for families," International Tax and Public Finance, Springer, vol. 14(3), pages 225-261, June.
    12. Mirrlees, James A, 1971. "An Exploration in the Theory of Optimum Income Taxation," Review of Economic Studies, Wiley Blackwell, vol. 38(114), pages 175-208, April.
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    Cited by:
    1. Guillermo Cruces & Marcelo Bérgolo & Andriana Conconi & Andrés Ham, 2012. "Are there Etchnic Inequality Traps in Education ? Empirical Evidence for Brazil and Chile," Working Papers PMMA 2012-05, PEP-PMMA.

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