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Preference for redistribution during structural change with labor mobility frictions

Author

Listed:
  • Krzysztof Makarski

    (Group for Research in Applied Economics (GRAPE)
    Warsaw School of Economics)

  • Joanna Tyrowicz

    (Group for Research in Applied Economics (GRAPE)
    University of Warsaw
    Institute of Labor Economics (IZA))

Abstract
Thorough structural change occurs periodically across world economies. In a parsimonious overlapping generation setup with political economy, we present a novel result: structural change not only exacerbates the rise in inequality but also strengthens the preference for redistribution. Labor mobility frictions are instrumental in this mechanism.

Suggested Citation

  • Krzysztof Makarski & Joanna Tyrowicz, 2022. "Preference for redistribution during structural change with labor mobility frictions," GRAPE Working Papers 69, GRAPE Group for Research in Applied Economics.
    • Handle: RePEc:fme:wpaper:69
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    More about this item

    Keywords

    structural change; structural change; labor mobility frictions; redistribution;
    All these keywords.

    JEL classification:

    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • Z1 - Other Special Topics - - Cultural Economics

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