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Inequality, Segregation, and Redistribution

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Author Info
Bjorvatn, K.
Cappelen, A.W.

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Abstract

In a model of endogenous choice of location and endogenous aversion against inequality, we demonstrate that large pre-tax difference in income may lead to a residential segregation of rich and poor. Such segregation may reduce the social attachment between the groups in society, and reduce the willingness of the rich to make transfers to the poor.

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Publisher Info
Paper provided by Norwegian School of Economics and Business Administration- in its series Papers with number 13/00.

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Length: 25 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:fth:norgee:13/00

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Postal: NORWEGIAN SCHOOL OF ECONOMICS AND BUSINESS ADMINISTRATION, HELLEVEIEN 30, 5035 BERGEN SANDVIKEN NORWAY.
Phone: 5595 9000
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Related research
Keywords: DISTRIBUTION ; INCOME ; TAXES;

Other versions of this item:

Find related papers by JEL classification:
D33 - Microeconomics - - Distribution - - - Factor Income Distribution
H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

Cited by:
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  1. Bjorvatn, Kjetil & Cappelen, Alexander, 2004. "Globalisation, inequality and redistribution," Memorandum 16/2004, Oslo University, Department of Economics. [Downloadable!]
    Other versions:
  2. Michele Giuseppe Giuranno, 2005. "Income Inequality and the Size of the Public Sector," Economics Discussion Papers 603, University of Essex, Department of Economics. [Downloadable!]
  3. Jo Thori Lind, 2003. "Fractionalization and the Size of Government," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  4. Francisco Martínez Mora, 2004. "The impact of fiscal decentralization on income segregation," Economic Working Papers at Centro de Estudios Andaluces E2004/68, Centro de Estudios Andaluces. [Downloadable!]
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This page was last updated on 2009-11-20.

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