 Social Identity, Redistribution, and DevelopmentMPRA Paper from University Library of Munich, Germany Abstract: Empirical studies suggest that income redistribution promotes economic growth and development by reducing inequality and increasing educational investment among the poor. However, the scale of redistribution is limited in many developing countries. Why is the scale of redistribution small? This paper examines the role of social identity, whose importance in redistribution and development is supported in existing empirical research. Under what conditions does national identity emerge, and how does it influence the economic outcomes? To answer the questions, this paper develops a dynamic model of income redistribution and educational investment augmented with social identification and explores the interaction among identity, redistribution, and development theoretically. Specifically, it examines how two key drivers of development---endogenous human capital accumulation and exogenous, increasingly skill-biased technological change---shape identity, redistribution, and development. Keywords: social identity; redistribution; economic development; national identity; nation-building policies (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:124755 Access Statistics for this paper More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC. |
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