Inequality, Segregation, and Redistribution
In a model of endogenous choice of location and endogenous aversion against inequality, we demonstrate that large pre-tax difference in income may lead to a residential segregation of rich and poor. Such segregation may reduce the social attachment between the groups in society, and reduce the willingness of the rich to make transfers to the poor.
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|Date of creation:||2000|
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References listed on IDEAS
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- Thomas Piketty, 1995.
"Social Mobility and Redistributive Politics,"
The Quarterly Journal of Economics,
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