G2TT
来源类型Working Paper
规范类型报告
DOI10.3386/w7485
来源IDWorking Paper 7485
Trade, Income Inequality, and Government Policies: Redistribution of Income or Education Subsidies?
Eckhard Janeba
发表日期2000
出版年2000
语种英语
摘要This paper explores the role of government policies in a situation where the wage gap between high-skilled and low-skilled workers is widening due to increasing foreign competition in the manufacturing of low-skilled intensive goods. A two-period, two-sector general equilibrium model of a small open economy is developed in which individuals choose whether to invest in skills or not. The government influences individual decision-making by redistribution of income or by subsidizing investment in skills. Both types of policies have complicated effects on income inequality and social welfare. The first policy discourages investment in skills while the latter, although successful in inducing more investment in skills, tends to be regressive by favoring those who acquire skills. Yet for a given income tax rate the Lorenz curves of the two different policies intersect. When the government maximizes social welfare education subsidies are useful only if there is a high degree of inequality aversion and financing the subsidy is not too distortive.
主题International Economics ; Trade ; Public Economics ; Taxation
URLhttps://www.nber.org/papers/w7485
来源智库National Bureau of Economic Research (United States)
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条目标识符http://119.78.100.153/handle/2XGU8XDN/565031
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GB/T 7714
Eckhard Janeba. Trade, Income Inequality, and Government Policies: Redistribution of Income or Education Subsidies?. 2000.
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