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Redistribution and individual characteristics

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  • IÓigo Iturbe-Ormaetxe

    ()
    (Departamento de Fundamentos del AnÂlisis EconÕmico, Universidad de Alicante, E-03071 Alicante, Spain)

Abstract

I study a model where personal income is a function of two different groups of individual characteristics, called "talent" and "effort" respectively. The distinction between these two groups is that society has taken the prior decision that the influence of traits from the first group needs to be moderated by any fair redistribution mechanism while differences in income due to traits from the second group must be preserved. I present two solutions that satisfy several intuitive properties of fairness and I use these properties to characterize both of them.

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Bibliographic Info

Article provided by Springer in its journal Review of Economic Design.

Volume (Year): 3 (1997)
Issue (Month): 1 ()
Pages: 45-55

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Handle: RePEc:spr:reecde:v:3:y:1997:i:1:p:45-55

Note: Received: 29 October 1995 / Accepted: 6 January 1997
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Related research

Keywords: Redistribution mechanisms; compensation; effort; talent;

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Cited by:
  1. Erwin Ooghe & Erik Schokkaert & Dirk gaer, 2007. "Equality of Opportunity versus Equality of Opportunity Sets," Social Choice and Welfare, Springer, Springer, vol. 28(2), pages 209-230, February.
  2. R.I. Luttens, 2006. "Minimal rights based solidarity," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium, Ghent University, Faculty of Economics and Business Administration 06/356, Ghent University, Faculty of Economics and Business Administration.
  3. SCHOKKAERT, Erik & VAN DE VOORDE, Carine, . "Direct versus indirect standardization in risk adjustment," CORE Discussion Papers RP -2139, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Alexander Cappelen & Bertil Tungodden, 2011. "Distributive interdependencies in liberal egalitarianism," Social Choice and Welfare, Springer, Springer, vol. 36(1), pages 35-47, January.
  5. Donal O'Neill & Olive Sweetman & Dirk van de gaer, 1999. "Equiality of Opportunity and Kernel Density Estimation: An Application to Intergenerational Mobility," Economics, Finance and Accounting Department Working Paper Series, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth n950999, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
  6. Vitorocco Peragine, . "Responsibility Compensation and Income Distribution," Discussion Papers 98/13, Department of Economics, University of York.
  7. Roland Luttens, 2010. "Minimal rights based solidarity," Social Choice and Welfare, Springer, Springer, vol. 34(1), pages 47-64, January.
  8. Paolo Brunori & Patrizia Luongo, 2010. "Fairness in Skill Acquisition," Working Papers - Economics wp2010_10.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.

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