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.

MoreLess

Year of publication:	2020
Authors:	Kotamäki, Mauri
Publisher:	Turku : Aboa Centre for Economics (ACE)
Subject:	Income Equality \| Income Distribution \| Unemployment Benefits \| Gini coefficient

More details

Series:	Discussion paper ; 134
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	hdl:10419/233349 [Handle] RePEc:tkk:dpaper:dp134 [RePEc]
Classification:	J20 - Time Allocation; Work Behavior; Employment Determination and Creation. General ; D31 - Personal Income, Wealth and Their Distributions ; J65 - Unemployment Insurance; Severance Pay; Plant Closings
Source:	EconStor

Persistent link: https://www.econbiz.de/10012503087