Arbeitspapier

Equality Enhancing Benefit Cut - Possible, but Unlikely

This paper considers whether a replacement rate cut can be income equality enhancing and with what conditions. The logical answer to the question is yes, if the propensity of moving from low income state to high income state is high enough. The main contribution of this paper is to derive an analytical expression of income equality improving elasticity. It specifies the limit, after which replacement rate cut is equality enhancing measured by Gini coefficient.

Language
Englisch

Bibliographic citation
Series: Discussion paper ; No. 134

Classification
Wirtschaft
Demand and Supply of Labor: General
Personal Income, Wealth, and Their Distributions
Unemployment Insurance; Severance Pay; Plant Closings
Subject
Income Equality
Income Distribution
Unemployment Benefits
Gini coefficient

Event
Geistige Schöpfung
(who)
Kotamäki, Mauri
Event
Veröffentlichung
(who)
Aboa Centre for Economics (ACE)
(where)
Turku
(when)
2020

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Kotamäki, Mauri
  • Aboa Centre for Economics (ACE)

Time of origin

  • 2020

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