Found 9 article(s) for author 'redistribution'

Why a Universal Basic Income Is Better Than Subsidies of Low-Wage Work

Why a Universal Basic Income Is Better Than Subsidies of Low-Wage Work. Maximilian Kasy, August 5, 2018, Paper, “In this paper, we compare subsidies of low-wage work, such as the Earned Income Tax Credit (EITC), to unconditional cash transfers—or what is commonly referred to as a universal basic income (UBI).2 The EITC helps families with low earnings but does not provide any support to those without earnings. It is an extremely popular policy because it redistributes income to low-earning families while encouraging work. In contrast, a UBI provides unconditional support to everyone and is often combined with a progressive tax on earnings.Link

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Misperceptions about immigration and support for redistribution

Misperceptions about immigration and support for redistribution. Alberto Alesina, July 31, 2018, Paper, “The debate on immigration is often based on misperceptions about the number and character of immigrants. The column uses data from surveys in six countries to show that such misperceptions are striking and widespread. The column also describes how an experiment in which people were encouraged think about their perception of immigrants made them more averse to redistribution in general, suggesting that the focus on immigration in the political debate – without correcting the misperceptions respondents have about immigrants – could have the unintended consequence of reducing support for redistribution.Link

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Immigration and Redistribution

Immigration and Redistribution. Alberto Alesina, June 2018, Paper, “We design and conduct large-scale surveys and experiments in six countries to investigate how natives’ perceptions of immigrants influence their preferences for redistribution. We find strikingly large biases in natives’ perceptions of the number and characteristics of immigrants: in all countries, respondents greatly overestimate the total number of immigrants, think immigrants are culturally and religiously more distant from them, and are economically weaker – less educated, more unemployed, poorer, and more reliant on government transfers – than is the case.Link

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Redistribution Without a Median Voter: Models of Multidimensional Politics

Redistribution Without a Median Voter: Models of Multidimensional Politics. Torben Iversen, May 2018, Paper, “Most work on redistribution in democracies is anchored in long-standing unidimensional models, notably the seminal Meltzer-Richard-Romer model. When scholars venture outside the security of unidimensionality, many either abandon theoretical rigor or miss the full consequences of adding more dimensions (whether ideological or economic). There is now a substantial literature on redistributive politics in multidimensional policy spaces, but it tends to be very technical and frequently misinterpreted, if not ignored. This purpose of this article is to review this relatively new literature using simple graphical representations,Link

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Technology Beats Corruption

Technology Beats Corruption, Rema Hanna, January 20, 2017, Paper, “More than 1.9 billion individuals in the developing world benefit from social safety net programs: noncontributory transfer programs that distribute cash or basic in-kind products to the poor. But despite their importance, high levels of corruption often stifle the effectiveness of these programs. If cash transfer programs are particularly prone to graft, then in-kind programs should be preferred in practice. In a recent paper, Muralidharan et al. report evidence to the contrary by showing that use of a modern banking technology—biometric smart cards—can help to drastically reduce corruption in cash transfer programs.Link

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Intergenerational Mobility and Preferences for Redistribution

Intergenerational Mobility and Preferences for Redistribution. Alberto Alesina, October 26, 2016, Paper, “Using newly collected cross-country survey and experimental data, we investigate how beliefs about intergenerational mobility affect individuals’ preferences for redistribution. We start by documenting the anatomy of views on mobility, fairness, the government, and redistribution across five countries: France, Italy, Sweden, the U.S., and the U.K. We show that Americans are more optimistic than Europeans about intergenerational mobility, and are generally too optimistic relative to reality, especially about the chances of making it from the very bottom to the very top quintile.Link

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Globalization, Inequality and Welfare

Globalization, Inequality and Welfare. Pol Antras, September 19, 2016, Paper, “This paper studies the welfare implications of trade opening in a world in which trade raises aggregate income but also increases income inequality, and in which redistribution needs to occur via a distortionary income tax-transfer system. We provide tools to characterize and quantify the effects of trade opening on the distribution of disposable income (after redistribution). We propose two adjustments to standard measures of the welfare gains from trade: a ‘welfarist’ correction inspired by the Atkinson (1970) index of inequality, and a ‘costly-redistribution’ correction capturing the efficiency costs associated with the behavioral responses of agents to trade-induced shifts across marginal tax rates.Link

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Politics for Markets

Politics for Markets. Torben Iversen, February 2015, Paper. “We argue that the welfare state operates very differently in the advanced sectors of modern economies and in the low-skill sectors. Governments are concerned to promote the advanced sectors of their economies in which they have comparative advantage. This is a valence issue not a partisan one. Where companies and employees in advanced sectors co-invest heavily in company-specific skills, then governments will be concerned to maintain insurance infrastructures to underwrite these investments…” Link

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Inequality, Labor Market Segmentation, and Preferences for Redistribution.

Inequality, Labor Market Segmentation, and Preferences for Redistribution. James Alt, Torben Iversen, August 11, 2014, Paper, “We formalize and examine two overlapping models that show how rising inequality combined with ethnic and racial heterogeneity can explain why many advanced industrial countries have experienced a drop in support for redistribution as inequality has risen. One model, based on altruism and homophily, focuses on the effect of increasing ‘social distance’ between the poor and the middle class, especially when minorities are increasingly overrepresented among the very poor.Link

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