Distributive policy with labor mobility and the Samaritan fs dilemma

Kohei Daido and Ken Tabata

No 44, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: We consider a model with two countries in which each government redistributes income between two types of individuals (the rich and the poor). This model shows that an increase in the mobility of individuals induces intensive tax competition across countries and lowers the level of redistribution undertaken by each country. However, this lower level of redistribution enhances individuals f efforts to raise his own labor income and alleviates the consequences of the Samaritan fs dilemma. Welfare evaluation of economic integration should be based on the balance of these two competing effects.

Keywords: Redistribution; Samaritan fs; dilemma; Migration; Economic; integration; Psychological attachment (search for similar items in EconPapers)
JEL-codes: C72 F15 F22 H53 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2009-01, Revised 2009-01
New Economics Papers: this item is included in nep-mig
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Persistent link: https://EconPapers.repec.org/RePEc:kgu:wpaper:44

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