Arbeitspapier

Identity and redistribution

This paper models the interaction between individuals' identity choices and redistribution. Both redistributive policies and identity choices are endogenous, and there might be multiple equilibria. The model is applied to ethnicity and social class. In an equilibrium with high taxes, the poor identify as poor and favor high taxes. In an equilibrium with low taxes, at least some of the poor identify with their ethnic group and favor low taxes. The model has two main predictions. First, redistribution is highest when society is ethnically homogenous, but the effect of ethnic diversity on redistribution is not necessarily monotonic. Second, when income inequality is low, an increase in income inequality might induce the poor to identify with their ethnic group and therefore favor lower taxes.

Sprache
Englisch

Erschienen in
Series: SSE/EFI Working Paper Series in Economics and Finance ; No. 659

Klassifikation
Wirtschaft
Taxation, Subsidies, and Revenue: General
Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
Thema
Redistribution
social identity
income inequality
ethnic fractionalization
ethnic diversity
social class
Einkommensumverteilung
Persönlichkeitspsychologie
Soziale Gruppe
Soziale Schicht
Ethnische Gruppe
Theorie

Ereignis
Geistige Schöpfung
(wer)
Lindqvist, Erik
Östling, Robert
Ereignis
Veröffentlichung
(wer)
Stockholm School of Economics, The Economic Research Institute (EFI)
(wo)
Stockholm
(wann)
2006

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Lindqvist, Erik
  • Östling, Robert
  • Stockholm School of Economics, The Economic Research Institute (EFI)

Entstanden

  • 2006

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