The redistributive consequences of segregation and misperceptions

Lisa Windsteiger

European Economic Review, 2022, vol. 144, issue C

Abstract: In this paper I present a model in which an increase in income inequality can lead to a decrease in voters’ demand for redistribution. In my model, people sort into groups according to income and as a result they become biased about the shape of the income distribution. I demonstrate that an increase in inequality can lead to a decrease in perceived inequality in the presence of segregation, and hence to a fall in people’s support for redistribution.

Keywords: Personal income distribution; Inequality; Redistribution; Segregation; Misperceptions (search for similar items in EconPapers)
JEL-codes: D31 D83 H24 H53 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:144:y:2022:i:c:s001429212200023x

DOI: 10.1016/j.euroecorev.2022.104073

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