Community Membership Aspirations: The Link between Inequality and Redistribution Revisited

35 Pages Posted: 11 Jul 2005

See all articles by Alain Desdoigts

Alain Desdoigts

CES-EUREQua (University of Paris 1 Pantheon-Sorbonne) and Université de Marne-La-Vallée

Fabien Moizeau

Université Paris I Panthéon-Sorbonne - Equipe Universitaire de Recherche en Economie Quantitative (EUREQUA)

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.

Suggested Citation

Desdoigts, Alain and Moizeau, Fabien, Community Membership Aspirations: The Link between Inequality and Redistribution Revisited. International Economic Review, Vol. 46, No. 3, pp. 973-1007, August 2005, Available at SSRN: https://ssrn.com/abstract=758072

Alain Desdoigts (Contact Author)

CES-EUREQua (University of Paris 1 Pantheon-Sorbonne) and Université de Marne-La-Vallée ( email )

106-112, bd de L'Hopital
Paris 13 Cedex, 75647
France

Fabien Moizeau

Université Paris I Panthéon-Sorbonne - Equipe Universitaire de Recherche en Economie Quantitative (EUREQUA) ( email )

106-112 Boulevard de l'Hopital
Paris Cedex 13, 75647
France

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