Skill Distributions and the Compatibility between Mobility and Redistribution

M. Socorro Puy

No E2004/51, Economic Working Papers at Centro de Estudios Andaluces from Centro de Estudios Andaluces

Abstract: We study to what extend in a Tiebout economy, the exogenous distribution of skill across agents affects the compatibility between mobility an redistribution. We propose a two-region economy where: i) each region redistributive policy is elected by majority rule (where both cases: myopic and sophisticated voters are considered), and ii) each region wage is endogenously determined by a separated labor market. We find that the compatibility between mobility and redistribution can be guaranteed when either there is a low-skilled region where the median skilled agent is below the mean skill of the region, or/and when there is a high-skilled region where the median skilled agent is above the mean skill of the region.

Keywords: Tiebout Economy; Redistribution; Sophisticated Voting; Majority rule. (search for similar items in EconPapers)
JEL-codes: D72 H23 H30 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2004
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Journal Article: Skill distributions and the compatibility between mobility and redistribution (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:cea:doctra:e2004_51

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