Showing 1 - 10 of 366
There is clear evidence that fairness plays a role in redistribution. Individuals want to compensate others for their … misfortune, while they allow them to enjoy the fruits of their effort. This paper introduces fairness in a tax-benefit scheme … fairness test, whereas the Baltic and Anglo-Saxon countries (including the US) perform worst. Our paper provides a new way to …
Persistent link: https://www.econbiz.de/10010277364
The Easterlin paradox" suggests that there is no link between a society's economic development and its average level of happiness. We re-assess this paradox analyzing multiple rich datasets spanning many decades. Using recent data on a broader array of countries, we establish a clear positive...
Persistent link: https://www.econbiz.de/10010264434
We illustrate a novel informational feature of education, which the government may utilize. Discretionary decisions of individuals to acquire education may serve as an additional signal (to earned labor income) on the underlying unobserved innate earning ability, thereby mitigating the...
Persistent link: https://www.econbiz.de/10010261166
We develop a model that allows for public goods and status signaling through charitable contributions. This model provides a unified framework in which contributions are driven both by altruism and status signaling. We use this setup to re-examine the conventional practice of rendering a...
Persistent link: https://www.econbiz.de/10010264058
In this paper, we discuss a novel aspect of affirmative action policy. We examine its redistributive role, asking whether in an egalitarian society, supplementing the tax-transfer system with an affirmative action policy would enhance social welfare.
Persistent link: https://www.econbiz.de/10010264133
We consider the notion of welfare stigma à la Besley and Coate (1992b). This stigma is attributed to welfare claimants by society when they are perceived as undeserving in the sense that they falsely claim to be eligible for welfare benefits. However, due to imperfect information, this stigma...
Persistent link: https://www.econbiz.de/10010264364
endogenous retirement. Labor taxation distorts not only labor supply, but also education and retirement decisions. Actuarially … adverse impact of taxation on skill formation. Feedbacks between education, labor supply, and retirement are important. The … explained by taxation without relying on unrealistically high labor supply elasticities. Reducing labor market distortions …
Persistent link: https://www.econbiz.de/10010264345
Using data from the 2006 wave of the German Socio-Economic Panel (GSOEP), this paper analyzes how a minimum wage affects employment, wage inequality, public expenditures, and aggregate income in the low-wage sector. It is shown that a statutory minimum wage of EUR 7.50 per hour would cost...
Persistent link: https://www.econbiz.de/10010264463
Do minimum wages reduce in-work-poverty and wage inequality? Or can alternative policies do better? We evaluate theses issues for the exemplary case of Germany that suffers from high unemployment among low-skilled workers and rising wage dispersion at the bottom of the wage distribution. We...
Persistent link: https://www.econbiz.de/10010264515
determinant of their preferences. Respondents' income determines which degree of redistribution is preferred. However, preferences …
Persistent link: https://www.econbiz.de/10010276093