Exploitation,skills, and inequality |
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| Authors: | Jonathan F. Cogliano Roberto Veneziani Naoki Yoshihara |
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| Affiliation: | 1. Center for the History of Political Economy, Duke University, Durham, NC, USA;2. Department of Economics, Dickinson College, Carlisle, PA, USA;3. jonathan.cogliano@duke.edu;5. School of Economics and Finance, Queen Mary University of London, London, UK;6. Department of Economics, University of Massachusetts Amherst, Amherst, MA, USA;7. The Institute of Economic Research, Hitotsubashi University, Kunitachi, Tokyo, Japan;8. School of Management, Kochi University of Technology, Kochi, Japan |
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| Abstract: | AbstractThis paper uses a computational framework to analyse the equilibrium dynamics of exploitation and inequality in accumulation economies with heterogeneous labour. A novel index is presented which measures the intensity of exploitation at the individual level and the dynamics of the distribution of exploitation intensity is analysed. Various taxation schemes are analysed which may reduce exploitation or inequalities in income and wealth. It is shown that relatively small taxation rates may have significant cumulative effects on wealth and income inequalities. Further, taxation schemes that eliminate exploitation also reduce disparities in income and wealth but in the presence of heterogeneous skills, do not necessarily eliminate them. The inegalitarian effects of different abilities need to be tackled with a progressive education policy that compensates for unfavourable circumstances. |
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| Keywords: | Exploitation heterogeneous labour wealth taxes computational methods |
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