Risk Aversion and Social Mobility: The Impossibility of Order-Pre-Serving Income Redistributions

12 Pages Posted: 2 Apr 2001

See all articles by Leif Danziger

Leif Danziger

Ben-Gurion University of the Negev - Department of Economics; IZA Institute of Labor Economics

Heinrich W. Ursprung

University of Konstanz; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: July 2000

Abstract

The traditional criticism notwithstanding, we show that social mobility can, in principle, explain political income redistributions. Nonetheless, the social-mobility argument for redistribution is not satisfactory, as actual transition probabilities are not consistent with order-preserving redistributions.

Keywords: Political economy, social mobility, income redistribution

JEL Classification: D31, D72, D81, H20

Suggested Citation

Danziger, Leif and Ursprung, Heinrich, Risk Aversion and Social Mobility: The Impossibility of Order-Pre-Serving Income Redistributions (July 2000). CESifo Working Paper Series No. 321. Available at SSRN: https://ssrn.com/abstract=263352

Leif Danziger

Ben-Gurion University of the Negev - Department of Economics ( email )

Beer-Sheva 84105
Israel
8-6472295 (Phone)
8-6472941 (Fax)

HOME PAGE: http://www.econ.bgu.ac.il/facultym/danziger/main.htm

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Heinrich Ursprung (Contact Author)

University of Konstanz ( email )

Konstanz, D-78457
Germany
+49 7531 88 3713 (Phone)

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

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