Income redistribution in open economies
| Autor: | Áron Tóbiás |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
income redistribution
international migration tax competition race to the bottom Economics and Econometrics Labour economics Race to the bottom Tax competition media_common.quotation_subject jel:D82 05 social sciences jel:H73 Welfare state Redistribution (cultural anthropology) jel:F22 jel:H21 Arbitrarily large 0502 economics and business Sustainability Economics 050207 economics Redistribution of income and wealth Welfare Finance 050205 econometrics media_common |
| Zdroj: | Journal of Public Economics. 134:19-34 |
| ISSN: | 0047-2727 |
| DOI: | 10.1016/j.jpubeco.2015.12.005 |
| Popis: | I propose a model of income redistribution in an open-economy environment. The world consists of a finite number of countries whose governments seek to maximize the welfare of their low-skilled populations by taxing skilled workers’ labor income. While tax competition limits the extent to which redistribution is possible—as compared to the closed-economy outcome—when skilled people are internationally mobile, I argue that race to the bottom does not necessarily occur, even if the number of countries becomes arbitrarily large. The asymptotic sustainability of the welfare state crucially depends on the statistical properties of the probability distribution of skilled people’s location preferences. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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