Research Papers in Economics, Department of Economics, Stockholm University
Young Liberals and Old Conservatives - Inequality, Mobility and Redistribution
() and Sten Nyberg
Abstract: The paper examines the impact of income inequality and
mobility on income redistribution in a modified median voter model where
redistributive conflict takes place both between educational groups and
age-groups. The effects of inequality and mobility are not unambiguous but
depend on factors such as how mobility changes in different groups and
causes of inequality. We also examine the effect of the length of electoral
periods on redistribution and welfare for different groups and allow for
majority voting on the length of electoral periods. Finally, we extend the
model to encompass retirement and baby booms.
Keywords: Inequality; mobility; income redistribution; median voter; age-earnings profiles; (follow links to similar papers)
JEL-Codes: D31; D72; H20; J31; P16; (follow links to similar papers)
32 pages, September 30, 2005
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