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Inequality, Segregation, and Redistribution

Author

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  • Bjorvatn, K.
  • Cappelen, A.W.

Abstract

In a model of endogenous choice of location and endogenous aversion against inequality, we demonstrate that large pre-tax difference in income may lead to a residential segregation of rich and poor. Such segregation may reduce the social attachment between the groups in society, and reduce the willingness of the rich to make transfers to the poor.

Suggested Citation

  • Bjorvatn, K. & Cappelen, A.W., 2000. "Inequality, Segregation, and Redistribution," Papers 13/00, Norwegian School of Economics and Business Administration-.
    • Handle: RePEc:fth:norgee:13/00
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    References listed on IDEAS

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    1. Thomas Piketty, 1995. "Social Mobility and Redistributive Politics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 551-584.
    2. Horstmann, Ignatius J & Scharf, Kimberley, 1999. "The New Federalism: Distributional Conflict, Voluntarism and Segregation," CEPR Discussion Papers 2273, C.E.P.R. Discussion Papers.
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    7. Douglas Massey, 1996. "The age of extremes: Concentrated affluence and poverty in the twenty-first century," Demography, Springer;Population Association of America (PAA), vol. 33(4), pages 395-412, November.
    8. Perotti, Roberto, 1996. "Growth, Income Distribution, and Democracy: What the Data Say," Journal of Economic Growth, Springer, vol. 1(2), pages 149-187, June.
    9. W.Norton Grubb, 1982. "The Dynamic Implications of the Tiebout Model: the Changing Composition of Boston Communities, 1960-1970," Public Finance Review, , vol. 10(1), pages 17-38, January.
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    Citations

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    Cited by:

    1. Ghassan, Hassan B., 2015. "A Consumer Model and Social Welfare Based on the Writings of Shibani (750-805 AD, 131-189 AH)," MPRA Paper 72441, University Library of Munich, Germany, revised 05 Mar 2016.
    2. Lind, Jo Thori, 2007. "Fractionalization and the size of government," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 51-76, February.
    3. Dilara Tosu & Montserrat Vilalta-Bufí, 2021. "Segregation and preferences for redistribution," UB School of Economics Working Papers 2021/408, University of Barcelona School of Economics.
    4. Giuranno, Michele Giuseppe, 2005. "Income Inequality and the Size of the Public Sector," Economics Discussion Papers 8895, University of Essex, Department of Economics.
    5. Feld, Immanuel & Fetzer, Thiemo, 2024. "Performative State Capacity and Climate (In) Action," The Warwick Economics Research Paper Series (TWERPS) 1495, University of Warwick, Department of Economics.
    6. Lin Yang, 2018. "The relationship between poverty and inequality: Resource constraint mechanisms," CASE Papers /212, Centre for Analysis of Social Exclusion, LSE.
    7. Lin Yang, 2018. "The net effect of housing-related costs and advantages on the relationship between inequality and poverty," CASE Papers /211, Centre for Analysis of Social Exclusion, LSE.
    8. Francisco Martínez Mora, 2004. "The impact of fiscal decentralization on income segregation," Economic Working Papers at Centro de Estudios Andaluces E2004/68, Centro de Estudios Andaluces.
    9. Bjorvatn, Kjetil & Cappelen, Alexander W., 2004. "Globalisation, inequality and redistribution," University of Göttingen Working Papers in Economics 33, University of Goettingen, Department of Economics.
    10. Michele Giuseppe Giuranno, 2009. "Regional Income Disparity and the Size of the Public Sector," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(5), pages 697-719, October.
    11. Schaeffer, Y. & Charlot, S., 2012. "Inequality aversion, income redistribution and economic geography," Working Papers 201204, Grenoble Applied Economics Laboratory (GAEL).
    12. Yang, Lin, 2018. "The relationship between poverty and inequality: resource constraint mechanisms," LSE Research Online Documents on Economics 103463, London School of Economics and Political Science, LSE Library.
    13. Harry Pettit, 2014. "Cities Without Suburbs: A Census 2010 Perspective, 4th Edition," European Planning Studies, Taylor & Francis Journals, vol. 22(9), pages 1989-1991, September.
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    More about this item

    Keywords

    DISTRIBUTION ; INCOME ; TAXES;
    All these keywords.

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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