{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Why Doesnt the US Have a European-Style Welfare System--student

Why Doesnt the US Have a European-Style Welfare System--student

Info icon This preview shows pages 1–18. Sign up to view the full content.

View Full Document Right Arrow Icon
Why Doesn’t the United States have a European-Style Welfare System? By: Alesina, Glaeser, and Sacerdote
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Basic Idea “European countries are much more generous to the poor relative to the US level of generosity. Economic models suggest that redistribution is a function of the variance and skewness of the pre-tax income distribution the volatility of income (perhaps because of trade shocks) the social costs of taxation and the expected income mobility of the median voter. None of these factors appear to explain the differences between the US and Europe.”
Image of page 2
Why is there more redistribution of income in European countries than in the United States? •Three Explanations: •Economic •Political •Behavioral
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
US vs. Europe
Image of page 4
US vs. Europe
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
US vs. Europe
Image of page 6
US vs. Europe
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 8
Economic Explanations Pre-Tax Income Inequality The Costs of Redistribution Social Mobility and Income Uncertainty Openness
Image of page 9

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon