Preference for redistribution during structural change with labor mobility frictions
Makarski, Krzysztof ; Tyrowicz, Joanna
Institute of Labor Economics, Bonn
IZA - Bonn
2022
24 p.
business cycle ; structural change ; labour mobility ; social inequality ; income redistribution
Discussion Papers
15613
Income distribution
https://docs.iza.org/dp15613.pdf
English
Bibliogr.
"Thorough structural change occurs periodically across world economies. In a parsimonious overlapping generation setup with political economy, we present a novel result: structural change not only exacerbates the rise in inequality but also strengthens the preference for redistribution. Labor mobility frictions are instrumental in this mechanism."
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