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Being up Front about Income Inequality

Abstract : This paper proposes universal provision of information about the income inequality involved in the creation of a good as a means of moderating income inequality. Existing evidence suggests that a section of the population would be willing to pay more for goods whose production involves less excessive income inequality. We show, on a simple model, that supplying inequality information to such a population under competitive markets will in general lead to a reduction in global income inequality. The effect will be stronger the more inequality averse the population. Moreover, the outcome will be socially efficient. Possibilities for (de-centralized) implementation are also discussed.
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Preprints, Working Papers, ...
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Contributor : Antoine Haldemann Connect in order to contact the contributor
Submitted on : Friday, July 10, 2020 - 4:44:05 PM
Last modification on : Sunday, August 2, 2020 - 8:44:03 AM




Brian Hill. Being up Front about Income Inequality. 2020. ⟨hal-02896664⟩



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