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Skill distributions and the compatibility between mobility and redistribution

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  • Puy, M. Socorro

Abstract

We study to what extend in a Tiebout economy, the exogenous distribution of skill across agents affects the compatibility between mobility an redistribution. We propose a two-region economy where: i) each region redistributive policy is elected by majority rule (where both cases: myopic and sophisticated voters are considered), and ii) each region wage is endogenously determined by a separated labor market. We find that the compatibility between mobility and redistribution can be guaranteed when either there is a low-skilled region where the median skilled agent is below the mean skill of the region, or/and when there is a high-skilled region where the median skilled agent is above the mean skill of the region.
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  • Puy, M. Socorro, 2007. "Skill distributions and the compatibility between mobility and redistribution," Regional Science and Urban Economics, Elsevier, vol. 37(3), pages 345-362, May.
    • Handle: RePEc:eee:regeco:v:37:y:2007:i:3:p:345-362
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    1. M. Socorro Puy, 2003. "External Equilibrium in Mobility and Redistribution Economies," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 5(2), pages 363-379, April.
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    8. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    9. Epple, Dennis & Romer, Thomas, 1991. "Mobility and Redistribution," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 828-858, August.
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    Cited by:

    1. Barberà, Salvador & Beviá, Carmen & Ponsatí, Clara, 2015. "Meritocracy, egalitarianism and the stability of majoritarian organizations," Games and Economic Behavior, Elsevier, vol. 91(C), pages 237-257.

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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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