Skill Distributions and the Compatibility between Mobility and Redistribution
AbstractWe study to what extend in a Tiebout economy, the exogenous distribution of skill across agents affects the compatibility between mobility an redistribution. We propose a two-region economy where: i) each region redistributive policy is elected by majority rule (where both cases: myopic and sophisticated voters are considered), and ii) each region wage is endogenously determined by a separated labor market. We find that the compatibility between mobility and redistribution can be guaranteed when either there is a low-skilled region where the median skilled agent is below the mean skill of the region, or/and when there is a high-skilled region where the median skilled agent is above the mean skill of the region.
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Bibliographic InfoPaper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2004/51.
Length: 21 pages
Date of creation: 2004
Date of revision:
Tiebout Economy; Redistribution; Sophisticated Voting; Majority rule.;
Other versions of this item:
- Puy, M. Socorro, 2007. "Skill distributions and the compatibility between mobility and redistribution," Regional Science and Urban Economics, Elsevier, vol. 37(3), pages 345-362, May.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-10-18 (All new papers)
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