Age structure and income distribution policy.
The dependence of earnings on age is a firmly established empirical fact.  A simple microeconomic model of educational choice, being consistent with this observation, is designed.  The model lends itself readily to aggregation over individuals and age groups.  Thus, relations can be set up between economic variables influencing the aggregate distribution of labor incomes and demographic variables determining the age structure of the population.  The main results of the present study are: 1) overall earnings inequality is shown to be an increasing function of life expectancy and a decreasing function of fertility.  2) The effectiveness of redistributive policies is sensitive to the age composition.  In particular, the inequality-reducing effect of a 1% income tax rise is shown to be smaller the older the population.
Von Weizsacker
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D017677:Age Distribution; D000367:Age Factors; D003710:Demography; D019049:Developed Countries; D004467:Economics; D005190:Family; D005191:Family Characteristics; D005298:Fertility; D005376:Financial Management; D007182:Income; D008018:Life Cycle Stages; D008017:Life Expectancy; D008136:Longevity; D018803:Models, Economic; D008962:Models, Theoretical; D009026:Mortality; D011153:Population; D011154:Population Characteristics; D011157:Population Dynamics; D011640:Public Policy; D012106:Research; D012456:Salaries and Fringe Benefits; D012959:Socioeconomic Factors; D013660:Taxes
Age Distribution; Age Factors; Demographic Factors; Developed Countries; Economic Factors; Economic Model; Family And Household; Family Research; Fertility; Financial Activities; Income; Income Distribution; Length Of Life; Life Cycle; Life Expectancy; Macroeconomic Factors; Microeconomic Factors; Models, Theoretical; Mortality; Policy; Population; Population Characteristics; Population Dynamics; Research Methodology; Socioeconomic Factors; Taxation; Wages