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Inequality, redistribution and cultural integration in the Welfare State

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  • Bisin, Alberto
  • Verdier, Thierry

Abstract

This paper constructs a simple theoretical political economy model to analyze the dynamic interactions between redistribution, public good provision and cultural integration of minority groups. Cultural differentiation erodes the support for general public good provision and vertical redistribution, reducing in turn the attractiveness of adoption of the mainstream culture by the minority groups. Our model shows the possibility for multiple politico-cultural steady state trajectories depending strongly on the initial degree of cultural differentiation in the society. An exogenous increase in income inequality is shown to increase the likelihood of multiple steady state trajectories. In a context with multiple minority groups, cultural fragmentation favors integration into the mainstream culture.

Suggested Citation

  • Bisin, Alberto & Verdier, Thierry, 2017. "Inequality, redistribution and cultural integration in the Welfare State," European Journal of Political Economy, Elsevier, vol. 50(C), pages 122-140.
  • Handle: RePEc:eee:poleco:v:50:y:2017:i:c:p:122-140
    DOI: 10.1016/j.ejpoleco.2017.03.005
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Inequality, redistribution and cultural integration in the Welfare State
      by maximorossi in NEP-LTV blog on 2017-06-01 18:40:29

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    Cited by:

    1. Peter Grajzl & Jonathan Eastwood & Valentina Dimitrova-Grajzl, 2017. "Should Immigrants Culturally Assimilate or Preserve Their Own Culture? Individual Beliefs and the Longevity of National Identity," CESifo Working Paper Series 6470, CESifo.
    2. Alberto Alesina & Armando Miano & Stefanie Stantcheva, 2018. "Immigration and Redistribution," NBER Working Papers 24733, National Bureau of Economic Research, Inc.
    3. Benjamin Elsner & Jeff Concannon, 2020. "Immigration and Redistribution," Working Papers 202024, School of Economics, University College Dublin.
    4. Jensen, Jeffrey L. & Yntiso, Sidak, 2019. "Democratic reversals and the size of government," European Journal of Political Economy, Elsevier, vol. 58(C), pages 21-49.
    5. Andreoli, Francesco & Olivera, Javier, 2020. "Preferences for redistribution and exposure to tax-benefit schemes in Europe," European Journal of Political Economy, Elsevier, vol. 63(C).
    6. Wickström, Bengt-Arne, 2020. "On the political economy of minority rights. Three ways to manipulate a minority: Goals, rules, and border poles," European Journal of Political Economy, Elsevier, vol. 64(C).

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    More about this item

    Keywords

    Political economy; Cultural integration; Inequality; Redistribution;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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