The Political Economy of Inequality, Mobility and Redistribution

Ignacio P. Campomanes is Resident Fellow at the Navarra Center for International Development. In this new paper he studies how the interaction between inequality and social mobility affects the choice of fiscal policy. Using a sample of 72 countries during the period 1960-2015, the results show that there is a positive relation between market inequality and the level of redistribution only when social mobility is relatively high.