Inequality, Segregation, and Redistribution

Kjetil Bjorvatn and Alexander Cappelen

Working Papers from Norwegian School of Economics and Business Administration-

Abstract: In a model of endogenous choice of location and endogenous aversion against inequality, we demonstrate that large pre-tax difference in income may lead to a residential segregation of rich and poor. Such segregation may reduce the social attachment between the groups in society, and reduce the willingness of the rich to make transfers to the poor.

Keywords: DISTRIBUTION; INCOME; TAXES (search for similar items in EconPapers)
JEL-codes: D33 H23 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2000
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Citations: View citations in EconPapers (5)

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Journal Article: Inequality, segregation, and redistribution (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:norgee:13/00

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