Does Redistribution Reduce Inequality?

A-Tier
Journal: Journal of Labor Economics
Year: 1986
Volume: 4
Issue: 4
Pages: 538-59

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The steady-state effect on inequality of linear redistributive schemes based on the taxation of earnings, inheritances, or some combination of the two is examined. Dynasties that exhibit asexual reproduction and altruism are modeled. Earnings ability, which may be correlated across generations, is exogenous and drawn from a station ary distribution. Taxing inheritances increases inequality by reducing the inter generational averaging of "luck." Taxing lifetime wealth or income adds a lump-sum tax on earnings, making redistribution more successful. However, this success is sensitive to the relative size of mean earnings and inheritances. Copyright 1986 by University of Chicago Press.

Technical Details

RePEc Handle
repec:ucp:jlabec:v:4:y:1986:i:4:p:538-59
Journal Field
Labor
Author Count
1
Added to Database
2026-01-25