Distributive policy with labor mobility and the Samaritanfs dilemma
AbstractWe consider a model with two countries in which each government redistributes income between two types of individuals (the rich and the poor). This model shows that an increase in the mobility of individuals induces intensive tax competition across countries and lowers the level of redistribution undertaken by each country. However, this lower level of redistribution enhances individualsf efforts to raise his own labor income and alleviates the consequences of the Samaritanfs dilemma. Welfare evaluation of economic integration should be based on the balance of these two competing effects.
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Bibliographic InfoPaper provided by School of Economics, Kwansei Gakuin University in its series Discussion Paper Series with number 44.
Length: 28 pages
Date of creation: Jan 2009
Date of revision: Jan 2009
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Redistribution; Samaritanfs; dilemma; Migration; Economic; integration; Psychological attachment;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- F15 - International Economics - - Trade - - - Economic Integration
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
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