Thorough structural change occurs periodically across world economies. In a parsimonious overlapping generation setup with political economy, we present a novel result: structural change not only exacerbates the rise in inequality but also strengthens the preference for redistribution. Labor mobility frictions are instrumental in this mechanism.
Unpublished version
Published version
2023
@article{makarski2023preference,
title={Preference for redistribution during structural change with labor mobility frictions},
author={Makarski, Krzysztof and Tyrowicz, Joanna},
journal={European Journal of Political Economy},
volume={77},
year={2023},
publisher={Elsevier}
}