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Inequality, redistribution and cultural integration in the Welfare State

Author

Listed:
  • Alberto Bisin

    (New York University [New York])

  • Thierry Verdier

    (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PUC-Rio - Pontifical Catholic University of Rio de Janeiro, CEPR - Center for Economic Policy Research - CEPR)

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, cultural fragmentation favors integration into the mainstream culture.

Suggested Citation

  • Alberto Bisin & Thierry Verdier, 2017. "Inequality, redistribution and cultural integration in the Welfare State," Post-Print hal-01631105, HAL.
  • Handle: RePEc:hal:journl:hal-01631105
    DOI: 10.1016/j.ejpoleco.2017.03.005
    Note: View the original document on HAL open archive server: https://hal-pjse.archives-ouvertes.fr/hal-01631105
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    References listed on IDEAS

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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

    Redistribution; Cultural integration; Political economy; Inequality;

    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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