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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.

Suggested Citation

  • Astri Muren & Sten Nyberg, 2005. "Young Liberals and Old Conservatives - Inequality, Mobility and Redistribution," CESifo Working Paper Series 1581, CESifo.
    • Handle: RePEc:ces:ceswps:_1581
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    More about this item

    Keywords

    inequality; mobility; income redistribution; median voter; age-earnings profiles;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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