Preferences over equality in the presence of costly income sorting

@inproceedings{Levy2012PreferencesOE,
  title={Preferences over equality in the presence of costly income sorting},
  author={Gilat Levy and Ronny Razin},
  year={2012}
}
We analyze preferences over redistribution in societies with costly (positive) sorting according to income. We identify a new motivation for redistribution, where individuals support taxation in order to reduce the incentives to sort. We characterize a simple condition over income distributions which implies that even relatively rich voters -with income above the meanwill prefer full equality (and thus no sorting) to societies with costly sorting. We show that the condition is satis…ed for… CONTINUE READING

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