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A note on the POUM effect with heterogeneous social mobility

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  • Feri, Francesco
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    Abstract

    We study the determinants of the (steady-state) POUM effect in a model where the individuals evaluate their expected future income using both their current income and observable characteristics such as education, race or gender.

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    File URL: http://www.sciencedirect.com/science/article/pii/S016517651100560X
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    Article provided by Elsevier in its journal Economics Letters.

    Volume (Year): 115 (2012)
    Issue (Month): 2 ()
    Pages: 258-262

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    Handle: RePEc:eee:ecolet:v:115:y:2012:i:2:p:258-262
    DOI: 10.1016/j.econlet.2011.12.037
    Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

    Keywords: Social mobility; Income distribution; Inequality; Taxation;

    Find related papers by 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
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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    1. Roland Benabou & Efe A. Ok, 2000. "Mobility as Progressivity: Ranking Income Processes According to Equality of Opportunity," Working Papers 150, Princeton University, Woodrow Wilson School of Public and International Affairs, Discussion Papers in Economics.
    2. Alesina, Alberto & La Ferrara, Eliana, 2005. "Preferences for redistribution in the land of opportunities," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 897-931, June.
    3. Rainer, Helmut & Siedler, Thomas, 2008. "Subjective income and employment expectations and preferences for redistribution," Economics Letters, Elsevier, vol. 99(3), pages 449-453, June.
    4. Roland Benabou & Efe A. Ok, 2001. "Social Mobility and the Demand for Redistribution: The Poum Hypothesis," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 447-487.
    5. Ravallion, Martin & Lokshin, Michael, 2000. "Who wants to redistribute?: The tunnel effect in 1990s Russia," Journal of Public Economics, Elsevier, vol. 76(1), pages 87-104, April.
    6. Thomas Piketty, 1995. "Social Mobility and Redistributive Politics," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 551-584.
    7. Hirschman, Albert O., 1973. "The changing tolerance for income inequality in the course of economic development," World Development, Elsevier, vol. 1(12), pages 29-36, December.
    8. Dardanoni Valentino, 1993. "Measuring Social Mobility," Journal of Economic Theory, Elsevier, vol. 61(2), pages 372-394, December.
    9. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
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