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Young Liberals and Old Conservatives - Inequality, Mobility and Redistribution

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  • Astri Muren
  • Sten Nyberg

Abstract

The paper examines the impact of income inequality and mobility on income redistribution in a modified median voter model where redistributive conflict takes place both between educational groups and age-groups. The effects of inequality and mobility are not unambiguous but depend on factors such as how mobility changes in different groups and causes of inequality. We also examine the effect of the length of electoral periods on redistribution and welfare for different groups and allow for majority voting on the length of electoral periods. Finally, we extend the model to encompass retirement and baby booms.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2005/wp-cesifo-2005-11/cesifo1_wp1581.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1581.

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Date of creation: 2005
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Handle: RePEc:ces:ceswps:_1581

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Keywords: inequality; mobility; income redistribution; median voter; age-earnings profiles;

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