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Exploitation, skills, and inequality

Jonathan Cogliano, Roberto Veneziani and Naoki Yoshihara ()

No 2018-01, Working Paper Series from Dickinson College, Department of Economics

Abstract: This paper uses a computational framework to analyse the equilibrium dynamics of exploitation and inequality in accumulation economies with heterogeneous labour. A novel index is presented which measures the intensity of exploitation at the individual level and the dynamics of the distribution of exploitation intensity is analysed. The effects of technical change and evolving social norms on exploitation and inequalities are also considered and an interesting phenomenon of exploitation cycles is identified. Various taxation schemes are analysed which may reduce exploitation or inequalities in income and wealth. It is shown that relatively small taxation rates may have significant cumulative effects on wealth and income inequalities. Further, taxation schemes that eliminate exploitation also reduce disparities in income and wealth but in the presence of heterogeneous skills, do not necessarily eliminate them. The inegalitarian effects of different abilities need to be tackled with a progressive education policy that compensates for unfavourable circumstances.

Keywords: Exploitation; Heterogeneous Labour; Wealth Taxes; Computational Methods (search for similar items in EconPapers)
JEL-codes: B51 C63 D31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-hme
Date: 2018-01
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http://users.dickinson.edu/~coglianj/RePEc/dic/wpaper/WP2018_01.pdf (application/pdf)

Related works:
Working Paper: Exploitation, Skills, and Inequality (2018) Downloads
Working Paper: Exploitation, skills, and inequality (2018) Downloads
Working Paper: Exploitation, skills, and inequality (2018) Downloads
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