[2023학년도 1학기]

경제학부 특강(세미나) 7차

– 일시 : 5월 25일(목) 12시~13시

– 장소 : 미래관 906호

– 주제 : Inter vs. Intragenerational Equity: Allowing disruptions under the Pareto criterion

– 연사 : 김응식 교수님 (Kansas University)

– 논문 요약

We study the problem faced by a government that is considering whether to allow a permanent labor market disruption (LMD) of a specific scale to enter the economy, knowing it will produce cross-cohort winners and losers by raising (lowering) wages of the skilled (unskilled). The Pareto criterion constrains the government: it must use simple taxes and transfers to ensure everyone post-LMD is at least as well off relative to the counterfactual status quo. We focus on those LMDs where the inaugural winners cannot fully compensate the same-cohort losers, and help from future generations is needed to make it jump over the Pareto hurdle. Three model elements add richness and complexity: an endogenous skill choice on the extensive margin, the presence of private information, and a dynamic, overlapping-generations structure. We prove that under public information, incremental-scale LMD can be allowed entry. Not so, under private information: the scale has to be sufficiently big. Notably, while the government can ensure intergenerational (pre-and post-LMD) equity, it must accept higher intragenerational inequity.