Young Liberals and Old Conservatives - Inequality, Mobility and Redistribution

34 Pages Posted: 26 Nov 2005

See all articles by Astri Muren

Astri Muren

Stockholm University - Department of Economics

Sten Nyberg

Stockholm University - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: November 2005

Abstract

The paper examines the impact of income inequality and mobility on income redistribution in a modified median voter model where redistributive conflict takes place both between educational groups and age-groups. The effects of inequality and mobility are not unambiguous but depend on factors such as how mobility changes in different groups and causes of inequality. We also examine the effect of the length of electoral periods on redistribution and welfare for different groups and allow for majority voting on the length of electoral periods. Finally, we extend the model to encompass retirement and baby booms.

Keywords: inequality, mobility, income redistribution, median voter, age-earnings profiles

JEL Classification: D31, D72, H20, J31, P16

Suggested Citation

Muren, Astri and Nyberg, Sten, Young Liberals and Old Conservatives - Inequality, Mobility and Redistribution (November 2005). CESifo Working Paper Series No. 1581, Available at SSRN: https://ssrn.com/abstract=854864 or http://dx.doi.org/10.2139/ssrn.854864

Astri Muren

Stockholm University - Department of Economics ( email )

Universitetsvägen 10 A
House A, floor 4 and 7
Frescati, Stockholm
Sweden
+46 8 16 3306 (Phone)

Sten Nyberg (Contact Author)

Stockholm University - Department of Economics ( email )

Universitetsvägen 10 A
House A, floor 4 and 7
Frescati, Stockholm
Sweden
+46-8-163305 (Phone)
+46-8-16 14 25 (Fax)

HOME PAGE: http://www.econ.su.se/~sn/

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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