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Preference for redistribution during structural change with labor mobility frictions

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  • Makarski, Krzysztof
  • Tyrowicz, Joanna

Abstract

Thorough structural change occurs periodically across world economies. In a parsimonious overlapping generation setup with political economy, we present a novel result: structural change not only exacerbates the rise in inequality but also strengthens the preference for redistribution. Labor mobility frictions are instrumental in this mechanism.

Suggested Citation

  • Makarski, Krzysztof & Tyrowicz, Joanna, 2023. "Preference for redistribution during structural change with labor mobility frictions," European Journal of Political Economy, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:poleco:v:77:y:2023:i:c:s0176268022001197
    DOI: 10.1016/j.ejpoleco.2022.102316
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    More about this item

    Keywords

    Structural change; Labor mobility frictions; Redistribution;
    All these keywords.

    JEL classification:

    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • Z1 - Other Special Topics - - Cultural Economics

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