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Income Distribution and Redistribution Within Federations

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  • David E. Wildasin

Abstract

In a federation, workers are generally legally entitled to seek employment in any locality or region. On the other hand, not all factors of production are equally mobile and some workers or other factors may not be able to relocate in order to take advantage of higher returns in other jurisdictions. Furthermore, the higher degree of factor mobility within a federation may constrain the ability of individual jurisdictions to undertake redistributive policies. The paper analyzes the efficiency and distributional consequences of the formation of federations and of decentralized redistributive policies within federations.

Suggested Citation

  • David E. Wildasin, 1997. "Income Distribution and Redistribution Within Federations," Annals of Economics and Statistics, GENES, issue 45, pages 291-313.
    • Handle: RePEc:adr:anecst:y:1997:i:45:p:291-313
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    File URL: http://www.jstor.org/stable/20076061
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    Cited by:

    1. Poutvaara, Panu, 2001. "Alternative tax constitutions and risky education in a federation," Regional Science and Urban Economics, Elsevier, vol. 31(2-3), pages 355-377, April.
    2. Paul Rothstein & Gary Hoover, 2006. "Group Welfare and the Formation of a Common Labor Market: Some Global Results," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 13(1), pages 3-23, January.
    3. Panu Poutvaara & Vesa Kanniainen, 2000. "Why Invest in Your Neighbor? Social Contract on Educational Investment," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 7(4), pages 547-562, August.
    4. Cremer, Helmuth & Pestieau, Pierre, 2002. "Factor Mobility and Redistribution: A Survey," IDEI Working Papers 154, Institut d'Économie Industrielle (IDEI), Toulouse, revised 2003.
    5. Simon, Andrew & Wilson, Matthew, 2021. "Optimal minimum wage setting in a federal system," Journal of Urban Economics, Elsevier, vol. 123(C).

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