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Community Membership Aspirations: The Link Between Inequality And Redistribution Revisited

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  • Alain Desdoigts
  • Fabien Moizeau

Abstract

This article studies how distributional tensions can act in many different ways depending on the social affinity between the different economic classes and their prospect of upward or downward mobility. We consider that socioeconomic group membership through its implied social interactions and peer effects is an important determinant of an individual's outcome. Agents, while voting on a social contract, take into account the consequences of their choice over their ex post belonging to a particular community. Thus, the endogenous sorting of the population into clusters may lead to a nonmonotonic relationship between inequality and the pressure for redistributive policies. Copyright 2005 by the Economics Department Of The University Of Pennsylvania And Osaka University Institute Of Social And Economic Research Association.

Suggested Citation

  • Alain Desdoigts & Fabien Moizeau, 2005. "Community Membership Aspirations: The Link Between Inequality And Redistribution Revisited," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(3), pages 973-1007, August.
    • Handle: RePEc:ier:iecrev:v:46:y:2005:i:3:p:973-1007
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    Cited by:

    1. repec:spo:wpmain:info:hdl:2441/13pk3v50kg9i9q98f7erie10rb is not listed on IDEAS
    2. Roland Bénabou & Jean Tirole, 2006. "Belief in a Just World and Redistributive Politics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 699-746.
    3. Gilles Le Garrec, 2014. "Fairness, socialization and the cultural deman for redistribution," Working Papers hal-03429910, HAL.
    4. repec:hal:spmain:info:hdl:2441/13pk3v50kg9i9q98f7erie10rb is not listed on IDEAS
    5. Gilles Le Garrec, 2018. "Fairness, social norms and the cultural demand for redistribution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 50(2), pages 191-212, February.
    6. Gilles Le Garrec, 2014. "Fairness, socialization and the cultural deman for redistribution," Documents de Travail de l'OFCE 2014-20, Observatoire Francais des Conjonctures Economiques (OFCE).
    7. Gilles Le Garrec, 2014. "Fairness, socialization and the cultural deman for redistribution," SciencePo Working papers Main hal-03429910, HAL.
    8. Mireya Bermeo Álvarez, 2013. "La economía política del tamano del Estado," Revista CIFE, Universidad Santo Tomás, June.

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