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Inequality, redistribution and cultural integration in the Welfare State

Author

Listed:
  • Alberto Bisin

    (NYU - New York University [New York] - NYU - NYU System)

  • Thierry Verdier

    (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PUC - 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

    as
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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. Jensen, Jeffrey L. & Yntiso, Sidak, 2019. "Democratic reversals and the size of government," European Journal of Political Economy, Elsevier, vol. 58(C), pages 21-49.
    2. Wickström, Bengt-Arne, 2020. "On the political economy of minority rights. Three ways to manipulate a minority: Goals, rules, and border poles," European Journal of Political Economy, Elsevier, vol. 64(C).
    3. Benjamin Elsner & Jeff Concannon, 2020. "Immigration and Redistribution," Working Papers 202024, School of Economics, University College Dublin.
    4. Andreoli, Francesco & Olivera, Javier, 2020. "Preferences for redistribution and exposure to tax-benefit schemes in Europe," European Journal of Political Economy, Elsevier, vol. 63(C).
    5. 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.
    6. Alesina, Alberto F & Miano, Armando & Stantcheva, Stefanie, 2018. "Immigration and Redistribution," CEPR Discussion Papers 13035, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    Redistribution; Cultural integration; Political economy; Inequality;
    All these keywords.

    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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