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Effect of social capital on income distribution preferences: comparison of neighborhood externality between high- and low-income households

Eiji Yamamura ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper explores how individual preferences for income redistribution are influenced by social capital, which is measured by rates of participation in community activities. I combined individual-level data and place of residence data to examine how social capital accumulated in residential areas influences an individual’s preference for income redistribution. After controlling for individual characteristics, I obtained the following key findings: people are more likely to prefer income redistribution in areas with higher rates of community participation. This tendency is more clearly observed in high-income groups than in low-income groups. This implies that one’s preference for income redistribution is influenced by psychological externalities.

Keywords: Redistribution; Social capital; Inequality; Externality (search for similar items in EconPapers)
JEL-codes: D30 D63 H20 Z13 (search for similar items in EconPapers)
Date: 2011-07-24
New Economics Papers: this item is included in nep-pol, nep-soc and nep-ure
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Related works:
Working Paper: Effect of social capital on income redistribution preferences: comparison of neighborhood externality between high- and low-income households (2012) Downloads
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