Inequality, Mobility and Redistributive Politics

This paper develops a model where income inequality and intergenerational mobility are jointly determined via redistributive politics. The model includes two key factors: accessibility of tertiary education for poor-born agents and multiple, selffulfilling expectations of agents. Given these factors, the model provides predictions of cross-country differences in inequality and mobility consistent with empirical observations. The model also demonstrates the dynamic motion of inequality and mobility as influenced by changes in the expectations of agents.