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Talents, preferences and inequality of well-being

Author

Listed:
  • Patrick Moyes

    (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

  • Udo Ebert

Abstract

The distribution of gross income net of taxes and transfers - or equivalenty consumption - is generally considered a reasonable approximation of the distribution of well-being in the society. One typically observes differing trends in the distribution of gross incomes across countries or within the same country over time. Where do these inequalities originate from? Considering a simple model with no taxation and where individuals belonging to the same society have identical preferences but different productivities, we investigate the impact on the distribution of gross income of changes in the way productivities are distributed. We also look for those changes in the common preference ordering that result in more equally distributed incomes when the allocation of productivities is fixed. Finally, we want to know how preferences have to be adjusted for less dispersed talents to always imply more evenly distributed incomes.
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Suggested Citation

  • Patrick Moyes & Udo Ebert, 2010. "Talents, preferences and inequality of well-being," Post-Print hal-00650778, HAL.
    • Handle: RePEc:hal:journl:hal-00650778
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    Cited by:

    1. Stephen Bazen & Patrick Moyes, 2012. "Elitism and stochastic dominance," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 39(1), pages 207-251, June.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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