The Redistributive Consequences of Segregation

Lisa Windsteiger

Working Papers from Max Planck Institute for Tax Law and Public Finance

Abstract: In this paper I present a model in which an increase in 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. I motivate my main assumptions with empirical evidence from a small survey that I conducted via Amazon Mechanical Turk.

Keywords: Personal Income Distribution; Inequality; Redistribution (search for similar items in EconPapers)
JEL-codes: D31 D83 H24 H53 (search for similar items in EconPapers)
Pages: 57 pages
Date: 2017-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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