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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, culltural fragmentation favors integration into the mainstream culture.

Suggested Citation

  • Bisin, Alberto & Verdier, Thierry, 2017. "Inequality, redistribution and cultural integration in the Welfare State," CEPR Discussion Papers 11916, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:11916
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    References listed on IDEAS

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    1. François Bourguignon, 2015. "The Globalization of Inequality," Economics Books, Princeton University Press, edition 1, number 10433.
    2. Fernández, Raquel & Levy, Gilat, 2008. "Diversity and redistribution," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 925-943, June.
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    4. Alberto Bisin & Thierry Verdier, 2000. ""Beyond the Melting Pot": Cultural Transmission, Marriage, and the Evolution of Ethnic and Religious Traits," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 955-988.
    5. François Facchini, 2015. "Inequality: The original economic sin of capitalism? An Evaluation of Thomas Piketty's "Capital in the twenty-first century," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01286694, HAL.
    6. Prummer, Anja & Siedlarek, Jan-Peter, 2017. "Community leaders and the preservation of cultural traits," Journal of Economic Theory, Elsevier, vol. 168(C), pages 143-176.
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    16. Alberto Bisin & Eleonora Patacchini & Thierry Verdier & Yves Zenou, 2008. "Are Muslim Immigrants Different in Terms of Cultural Integration?," Journal of the European Economic Association, MIT Press, vol. 6(2-3), pages 445-456, 04-05.
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    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 Group Munich.

    More about this item

    Keywords

    cultural integration; inequality; political economy; redistribution;

    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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