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Racism, Xenophobia and Distribution

Author

Listed:
  • Woojin Lee

    (UMass Amherst - University of Massachusetts [Amherst] - UMASS - University of Massachusetts System)

  • John E. Roemer

    (Yale University [New Haven])

  • Karine van Der Straeten

    (PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, CECO - Laboratoire d'économétrie de l'École polytechnique - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique)

Abstract

We model political competition as a contest between parties that represent constituents, and which announce policies in a two-dimensional policy space; the first dimension concerns the degree of redistribution, and the second, the race or immigration issue. Given the distribution of voter preferences on this space, a political equilibrium is determined. We study the effect that racist or anti-immigrant preferences in the polity have on equilibrium values of the redistributive policy. For the United States, there is a substantial reduction in distribution below what it counterfactually would have been, absent racism. For the UK, France, and Denmark, there are effects of the same sign, but with different magnitudes.

Suggested Citation

  • Woojin Lee & John E. Roemer & Karine van Der Straeten, 2006. "Racism, Xenophobia and Distribution," Post-Print halshs-00754163, HAL.
    • Handle: RePEc:hal:journl:halshs-00754163
    DOI: 10.1162/jeea.2006.4.2-3.446
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    JEL classification:

    • D3 - Microeconomics - - Distribution
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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