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Social Identity, Redistribution, and Development

Author

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  • Yuki, Kazuhiro

Abstract

Empirical studies suggest that income redistribution promotes economic growth and development by reducing inequality and increasing educational investment among the poor. However, the scale of redistribution is limited in many developing countries. Why is the scale of redistribution small? This paper examines the role of social identity, whose importance in redistribution and development is supported in existing empirical research. Under what conditions does national identity emerge, and how does it influence the economic outcomes? To answer the questions, this paper develops a dynamic model of income redistribution and educational investment augmented with social identification and explores the interaction among identity, redistribution, and development theoretically. Specifically, it examines how two key drivers of development---endogenous human capital accumulation and exogenous, increasingly skill-biased technological change---shape identity, redistribution, and development.

Suggested Citation

  • Yuki, Kazuhiro, 2025. "Social Identity, Redistribution, and Development," MPRA Paper 124755, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:124755
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    File URL: https://mpra.ub.uni-muenchen.de/124755/9/MPRA_paper_124755.pdf
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    More about this item

    Keywords

    social identity; redistribution; economic development; national identity; nation-building policies;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General

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