Incorporating affirmative action into the welfare state |
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| Authors: | Tomer Blumkin Yoram Margalioth Efraim Sadka |
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| Affiliation: | aDepartment of Economics, Ben-Gurion University, Beer-Sheba 84105, Israel;bThe Buchman Faculty of Law, Tel Aviv University, Tel Aviv 69978, Israel;cThe Eitan Berglas School of Economics, Tel Aviv University, Tel Aviv 69978, Israel |
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| Abstract: | In this paper, we discuss a novel aspect of affirmative action policy. We examine its redistributive role, asking whether in an egalitarian society, supplementing the tax-transfer system with an affirmative action policy would enhance social welfare. We demonstrate that affirmative action could be a desirable policy tool even if racial discrimination does not exist in the labor market. |
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| Keywords: | Affirmative action Optimal taxation Tagging |
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