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Social capital, household income, and preferences for income redistribution

Eiji Yamamura

European Journal of Political Economy, 2012, vol. 28, issue 4, 498-511

Abstract: This paper explores how social capital influences individual preferences for income redistribution. Social capital is measured by participation in community activities. After controlling for individual characteristics, I find that people are more likely to express preferences for income redistribution in areas with higher rates of community participation. This is more clearly so in high-income groups than in low-income groups. I infer that individuals' preferences for income redistribution are influenced by psychological externalities. Because the data is from surveys, I also consider the role of expressive behavior. I also consider the hypothesis that behavior is influenced by social distance.

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: 2012
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