Inter-Ethnic Redistribution and Human Capital Investments
This article analyzes income redistribution in the inter-ethnic context. The model shows that redistribution in favor of less prosperous ethnic minorities raises fertility among the unskilled minority recipients, lowers fertility among the contributing local skilled, slows human capital accumulation, and reduces the per-capita output growth. The analysis also demonstrates that income redistribution, although financed by taxes levied on the skilled, generates a mechanism that, via its disincentive effect on human capital investment, works strongly against another weak segment of society – the local unskilled. This may provide a purely economic explanation for antipathy toward minorities, especially, among less educated.
|Date of creation:||Jan 2009|
|Contact details of provider:|| Postal: Faculty of Social Sciences, Bar Ilan University 52900 Ramat-Gan|
Phone: Phone: +972-3-5318345
Web page: http://www.biu.ac.il/soc/ec
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:biu:wpaper:2009-01. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Department of Economics)
If references are entirely missing, you can add them using this form.