Income redistribution going awryThe reversal power of the concern for relative deprivation
Income redistribution going awry
The reversal power of the concern for relative deprivation
Dokument öffnen (616.7KB)Datum der Veröffentlichung
12.2012Verlag / herausgebende Einrichtung
Center for Development Research (ZEF), University of BonnVerlagsort
BonnMetadaten
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Zitierbarer Link (Handle URI) 
https://hdl.handle.net/20.500.11811/12229
Inhalt
We demonstrate that a rank-preserving transfer from a richer individual to a poorer individual can exacerbate income inequality (when inequality is measured by the Gini coefficient). This happens when individuals’ preferences depend negatively not only on work time (effort) but also on low relative income. It is rigorously shown that the set of preference profiles that gives rise to this perverse effect of a transfer on inequality is a non-empty open subset of all preference profiles. A robust example illustrates this result.
Schlagwörter
rank-preserving inequality-narrowing transfer, Gini coefficient, Low relative income, Relative deprivation, Exacerbated inequality
Klassifikation (DDC)
300 Sozialwissenschaften, Soziologie, Anthropologie 320 Politik 330 WirtschaftErstpublikation
https://www.zef.de/fileadmin/user_upload/zef_dp_173.pdfReihe, Nummer
ZEF-Discussion Papers on Development Policy ; 173Sorger, Gerhard; Stark, Oded: Income redistribution going awry : The reversal power of the concern for relative deprivation. Bonn: Center for Development Research (ZEF), University of Bonn, 2012. In: ZEF-Discussion Papers on Development Policy, 173.
Online-Ausgabe in bonndoc: https://hdl.handle.net/20.500.11811/12229
Online-Ausgabe in bonndoc: https://hdl.handle.net/20.500.11811/12229
@techreport{handle:20.500.11811/12229,
author = {{Gerhard Sorger} and {Oded Stark}},
title = {Income redistribution going awry : The reversal power of the concern for relative deprivation},
publisher = {Center for Development Research (ZEF), University of Bonn},
year = 2012,
month = dec,
series = {ZEF-Discussion Papers on Development Policy},
volume = 173,
note = {We demonstrate that a rank-preserving transfer from a richer individual to a poorer individual can exacerbate income inequality (when inequality is measured by the Gini coefficient). This happens when individuals’ preferences depend negatively not only on work time (effort) but also on low relative income. It is rigorously shown that the set of preference profiles that gives rise to this perverse effect of a transfer on inequality is a non-empty open subset of all preference profiles. A robust example illustrates this result.},
url = {https://hdl.handle.net/20.500.11811/12229}
}
author = {{Gerhard Sorger} and {Oded Stark}},
title = {Income redistribution going awry : The reversal power of the concern for relative deprivation},
publisher = {Center for Development Research (ZEF), University of Bonn},
year = 2012,
month = dec,
series = {ZEF-Discussion Papers on Development Policy},
volume = 173,
note = {We demonstrate that a rank-preserving transfer from a richer individual to a poorer individual can exacerbate income inequality (when inequality is measured by the Gini coefficient). This happens when individuals’ preferences depend negatively not only on work time (effort) but also on low relative income. It is rigorously shown that the set of preference profiles that gives rise to this perverse effect of a transfer on inequality is a non-empty open subset of all preference profiles. A robust example illustrates this result.},
url = {https://hdl.handle.net/20.500.11811/12229}
}
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