2016

Ethnic Fractionalization and the Demand for Redistribution – Potential Implications for the Nordic Model

Reprint No. 2016:18

Author(s): Johanna MöllerströmYear: 2016 Title: Nordic Economic Policy Review Volume (No.): 2016 (1) Pages: 219–243
Online article (restrictions may apply)

Ethnic Fractionalization and the Demand for Redistribution – Potential Implications for the Nordic Model Johanna Möllerström


A distinctive feature of the Nordic model is that economic resources are redistributed between citizens to a high degree. Historically, the Nordic voters have expressed a higher demand for such redistribution than people in other parts of the world. This paper considers the factors that determine individual preferences for redistribution, giving special attention to heterogeneity in the form of ethnic fractionalization. Such heterogeneity is generally linked to reductions in demand for redistribution. The paper takes as its starting point the fact that the populations in all the Nordic countries are, to varying degrees, becoming increasingly heterogeneous. Potential mechanisms for why this may have a negative impact on demand for redistribution, and potential consequences for the Nordic model are discussed.


Reference:
Möllerström, Johanna (2016), "Ethnic Fractionalization and the Demand for Redistribution – Potential Implications for the Nordic Model". Nordic Economic Policy Review 2016(1), 219–243.

Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

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In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?

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