- Overall earnings inequality is shown to be an increasing function of life expectancy and a decreasing function of fertility.
-The effectiveness of redistributive policies is sensitive to the age composition. In particular, the inequality-reducing effect of a one percent income tax rise is shown to be the smaller the older the population.
The present study
of interrelations between age structure differentials, income inequality and distribution policy generally suggests
that existing models of income dispersion should be extended to include age composition as an explanatory
variable. Otherwise, the extent of economic inequity and the impact of redistributive government actions may be
Creation-Date: April 1987
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