Experienced inequality and preferences for redistribution

Christopher Roth and Johannes Wohlfart

Journal of Public Economics, 2018, vol. 167, issue C, 251-262

Abstract: We examine whether individuals' experienced levels of income inequality affect their preferences for redistribution. We use several large nationally representative datasets to show that people who have experienced higher inequality during their lives are less in favor of redistribution, after controlling for income, demographics, unemployment experiences and current macroeconomic conditions. They are also less likely to support left-wing parties and to consider the prevailing distribution of incomes to be unfair. We provide evidence that these findings do not operate through extrapolation from own circumstances, perceived relative income or trust in the political system, but seem to operate through the respondents' fairness views.

Keywords: Inequality; Redistribution; Macroeconomic experiences; Fairness (search for similar items in EconPapers)
JEL-codes: E60 P16 Z13 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (92)

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Working Paper: Experienced Inequality and Preferences for Redistribution (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:167:y:2018:i:c:p:251-262

DOI: 10.1016/j.jpubeco.2018.09.012

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