Reform Windfall as Redistribution: A Survey Experiment on Redistributive Preferences in Contemporary China

Margot Belguise, Nora Yuqian Chen, Yuchen Huang and Zhenxun Zhexun Mo
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Margot Belguise: Department of Economics, Warwick University
Nora Yuqian Chen: Department of Government, Harvard University
Yuchen Huang: Department of Economics, Sciences Po Paris;
Zhenxun Zhexun Mo: Stone Center on Socio-Economic Inequality, GC-CUNY & World Inequality Lab

The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics

Abstract: China has experienced a remarkable rise in living standards over four decades of economic reforms, alongside a tremendous increase in inequalities. In this context, do Chinese people support redistribution of wealth gained through reform windfalls? To answer this question, we conducted an online survey experiment with a nationally representative sample from China (N = 2, 000). The treatment group was shown examples of wealth acquired through typical reform-era pathways requiring minimal ability or effort. This exposure led to a 0.1 standard deviation decrease in their support for redistribution. We propose a “reform windfall as redistribution” mechanism to explain this reduction : the treated group perceives the reform era as inherently redistributive, providing opportunities to escape systemic inequalities tied to the political system, thereby reducing the perceived need for formal redistribution. This decline in support is not driven by changes in fairness perceptions, as respondents do not attribute the wealth acquisition scenarios to ability or effort, nor do they view them as distinctly fair or unfair. Furthermore, we find limited evidence of heterogeneity, with one exception: individuals reporting higher economic pressure show an even greater reduction in redistributive support when exposed to the treatment. We hypothesize that this occurs because unmet expectations for upward mobility exacerbate their reactions to the treatment scenarios.

Date: 2024
New Economics Papers: this item is included in nep-cna and nep-exp
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