Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/233349 
Year of Publication: 
2020
Series/Report no.: 
Discussion paper No. 134
Publisher: 
Aboa Centre for Economics (ACE), Turku
Abstract: 
This paper considers whether a replacement rate cut can be income equality enhancing and with what conditions. The logical answer to the question is yes, if the propensity of moving from low income state to high income state is high enough. The main contribution of this paper is to derive an analytical expression of income equality improving elasticity. It specifies the limit, after which replacement rate cut is equality enhancing measured by Gini coefficient.
Subjects: 
Income Equality
Income Distribution
Unemployment Benefits
Gini coefficient
JEL: 
J20
D31
J65
Document Type: 
Working Paper

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