Class, Community, Inequality

Indraneel Dasgupta () and Ravi Kanbur

No 127671, Working Papers from Cornell University, Department of Applied Economics and Management

Abstract: We investigate how voluntary contributions to community-specific public goods affect (a) the relationship between inequality of incomes and inequality of welfare outcomes, and (b) individuals’ material incentives for supporting income redistribution. We show that the nominal distribution of income could give quite a misleading picture of real inequality and tensions in society, both within and between communities. We also analyze the impact of alternative patterns of income growth on welfare inequality, and show that, somewhat paradoxically, individuals sometimes have incentives for opposing redistribution programs from which they themselves stand to receive income increments. This arises because of the complicating role of public goods, and has strong implications for class and community solidarity.

Keywords: Community/Rural/Urban; Development (search for similar items in EconPapers)
Pages: 40
Date: 2001-12
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:cudawp:127671

DOI: 10.22004/ag.econ.127671

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