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Identity and redistribution

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  • Erik Lindqvist

    ()

  • Robert Östling

    ()

Abstract

This paper models the interaction between individuals’ identity choices and redistribution. Both redistributive policies and identity choices are endogenous, and there might be multiple equilibria. The model is applied to ethnicity and social class. In an equilibrium with high taxes, the poor identify as poor and favor high taxes. In an equilibrium with low taxes, at least some of the poor identify with their ethnic group and favor low taxes. The model predicts that redistribution is highest when society is ethnically homogeneous, but the effect of ethnic diversity on redistribution is not necessarily monotonic. Copyright Springer Science+Business Media, LLC 2013

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 155 (2013)
Issue (Month): 3 (June)
Pages: 469-491

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Handle: RePEc:kap:pubcho:v:155:y:2013:i:3:p:469-491

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Web page: http://www.springerlink.com/link.asp?id=100332

Related research

Keywords: Redistribution; Social identity; Income inequality; Ethnic fractionalization; Ethnic diversity; Social class;

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Citations

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Cited by:
  1. Barnett, Richard & Bhattacharya, Joydeep & Bunzel, Helle, 2012. "Voting for immiserizing income redistribution in the Meltzer-Richard model," School of Economics Working Paper Series 2012-15, LeBow College of Business, Drexel University.
  2. Pierre Kohler, 2012. "The Effect of Host Society Culture on Migrant Wage Discrimination: Approaching the Roestigraben," IHEID Working Papers 08-2012, Economics Section, The Graduate Institute of International Studies.
  3. John Smith, 2007. "Reputation, Social Identity and Social Conflict," Departmental Working Papers 200709, Rutgers University, Department of Economics.
  4. Lindqvist, Erik & Östling, Robert, 2006. "Identity and Redistribution," Working Paper Series in Economics and Finance 659, Stockholm School of Economics, revised 12 Jun 2007.
  5. Ronny Freier & Benny Geys & Joshua Holm, 2013. "Religious Heterogeneity and Fiscal Policy: Evidence from German Reunification," Discussion Papers of DIW Berlin 1266, DIW Berlin, German Institute for Economic Research.
  6. Kohler, Pierre, 2012. "Three essays on the economic and cultural integration of migrants in Switzerland: putting into perspective the influence of economic discrimination and of host society culture," MPRA Paper 38129, University Library of Munich, Germany.
  7. Fong, Christina M. & Luttmer, Erzo F. P., 2009. "Do Race and Fairness Matter in Generosity? Evidence from a Nationally Representative Charity Experiment," Working Paper Series rwp09-014, Harvard University, John F. Kennedy School of Government.
  8. Wagener, Andreas & Kolmar, Martin, 2011. "Group Identities in Conflicts," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48694, Verein für Socialpolitik / German Economic Association.

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