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Distributive policy with labor mobility and the Samaritan fs dilemma

Author

Listed:
  • Kohei Daido

    (Kwansei Gakuin University)

  • Ken Tabata

    (Kobe City University of Foreign Studies)

Abstract

We consider a model with two countries in which each government redistributes income between two types of individuals (the rich and the poor). This model shows that an increase in the mobility of individuals induces intensive tax competition across countries and lowers the level of redistribution undertaken by each country. However, this lower level of redistribution enhances individuals f efforts to raise his own labor income and alleviates the consequences of the Samaritan fs dilemma. Welfare evaluation of economic integration should be based on the balance of these two competing effects.

Suggested Citation

  • Kohei Daido & Ken Tabata, 2009. "Distributive policy with labor mobility and the Samaritan fs dilemma," Discussion Paper Series 44, School of Economics, Kwansei Gakuin University, revised Jan 2009.
    • Handle: RePEc:kgu:wpaper:44
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    File Function: First version, 2009
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    More about this item

    Keywords

    Redistribution; Samaritan fs; dilemma; Migration; Economic; integration; Psychological attachment;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • F15 - International Economics - - Trade - - - Economic Integration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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