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Inequality and redistribution : the need for new perspectives

Sandmo, Agnar
Working paper
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URI
http://hdl.handle.net/11250/163274
Date
2005-02
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  • Discussion papers (SAM) [586]
Abstract
Recent years have seen a marked increase in inequality in the OECD area, and since the early

1990s the trend has been unmistakable in Norway also. This paper offers a brief review of the

main causes behind this development, in particular globalisation, skill-biased technical

change, tax reform and deregulation, and a greater role for non-competitive labour markets.

As an example of the last point it reviews a tournament model of wage formation and its

implications for tax incidence and inequality. Lastly, the paper argues that the expenditure tax

may be a better alternative than the dual income tax for combining concerns for economic efficiency and a more even distribution of income after tax.
Publisher
Norwegian School of Economics and Business Administration. Department of Economics
Series
Discussion paper
2005:4

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