Inter-ethnic redistribution and human investments

Arbeitspapier

This article analyzes income redistribution in the inter-ethnic context. The model shows that redistribution in favor of less prosperous ethnic minorities raises fertility among the unskilled minority recipients, lowers fertility among the contributing local skilled, slows human capital accumulation, and reduces the per-capita output growth. The analysis also demonstrates that income redistribution, although financed by taxes levied on the skilled, generates a mechanism that, via its disincentive effect on human capital investment, works strongly against another weak segment of society - the local unskilled. This may provide a purely economic explanation for antipathy toward minorities, especially, among less educated.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2009-01

Classification and Topics

• Classification: Wirtschaft
• Subject: redistribution ; ethnic diversity ; fertility ; human capital ; economic growth ; Einkommensverteilung ; Ethnische Gruppe ; Fertilität ; Humankapital ; Wirtschaftswachstum ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Azarnert, Leonid V.
• Event: Veröffentlichung
• (who): Bar-Ilan University, Department of Economics
• (where): Ramat-Gan
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/96096
• Last update: 04.01.0016, 11:44 AM CET