Public Economics and Inequality: Uncovering Our Social Nature

Emmanuel Saez

No 28387, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper argues that the social nature of humans, absent from the standard economic model, is crucial to understand our large modern social states and why concerns about inequality are so pervasive. A social solution arises when a situation is resolved at the group level (rather than the individual level) through cooperation and fair distribution of the resulting surplus. In human societies, childcare and education for the young, retirement benefits for the old, health care for the sick, and income support for those in need, is resolved at the social level, and through the social state in advanced economies. Social situations are pervasive even outside government and play a significant role in the distribution of pre-tax market incomes.

JEL-codes: H0 (search for similar items in EconPapers)
Date: 2021-01
New Economics Papers: this item is included in nep-dem, nep-hea, nep-hpe and nep-pbe
Note: PE
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Citations: View citations in EconPapers (8)

Published as Emmanuel Saez, 2021. "Public Economics and Inequality: Uncovering Our Social Nature," AEA Papers and Proceedings, vol 111, pages 1-26.

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Journal Article: Public Economics and Inequality: Uncovering Our Social Nature (2021)
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