Inequality aversionRedistributionWe investigate the effects of inequality aversion on equilibrium labor supply, tax revenue, income inequality, and median voter outcomes in a society where agents have heterogeneous skill levels. These outcomes are compared to those which result from the behavior of ...
Does inequality in the distant past affect long-run growth, and if so, how? While these long-standing questions have been examined in a vast theoretical literature, very contrasting views have been reached thus far. The view that inequality fosters growth is shared by classical economists who ar...
How Does Inequality Affect Long-Run Growth?Inequalityentrepreneurshippanel dataThis article shows that countries with higher historical levels of income inequality, dating back to the early 1800s, experienced lower rates of growth centuries after in terms of number of firms created, number of employees...
aWe construct a simple model to illustrate how income inequality could affect consumption due to the status-seeking motive. In our model, an individual lives for two periods, and there is some exogenously given income in the first period, Y1. He consumes C1 and saves S=Y1-C1 in the first...
And if artificial intelligence does replace them, then there may be even fewer well-paying jobs left for our children. This will result in more anxiety for nonparents and parents alike. Hence, the number one solution to prevent the AI revolution from destroying your livelihood isgetting so ...
Earnings inequality, caregiving expenses and other factors can negatively impact women's retirement savings. Women are generally more concerned than men about unexpected expenses and the well-being of children and family. Key Takeaways A recent Prudential survey revealed that women have less than a ...
Those with access to good education throughout their lives are usually healthier than people without. Education gives you a chance at upward mobility, which can allow you to get to a better financial situation to access quality health care. Education also allows you to stay informed about how ...
Collective guilt (inequality) This type of guilt is derived from a person’s perception of justice and right from wrong. When you feel bad about imbalanced circumstances, like racial discrimination or sexism, and perceive you are not contributing to improving them, you may feel coll...
In fact, inaccurate results are common enough -- particularly with more and more people using ChatGPT -- that there's a term for the problem:AI hallucinations. "So, just like you can't believe everything on the internet, you can't believe everything you hear from a chatbot...
Another reason for imposing luxury taxes is to promotesocial equityand reduce income inequality. Governments aim to redistribute wealth by taxing luxury goods and reducing the disparity between the rich and the poor. This revenue taken from the wealthy can then be used to fund programs that benefit...