Freedom and Redistribution

Sebastiano Bavetta () and Pietro Navarra ()
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Sebastiano Bavetta: Università di Palermo and CPNSS London School of Economics
Pietro Navarra: Università di Messina and CPNSS London School of Economics

Rivista di Politica Economica, 2012, issue 3, 29-49

Abstract: We study the determinants of people’s attitudes toward income inequality and their economic consequences. We argue that attitudes toward inequality depend on the extent of freedom of choice and control over life outcomes an individual enjoys. We construct a two-stage empirical model where people choose the level of income transfers first and their optimal level of effort, then. We find that the higher the extent of an individual’s free choice and control over life outcomes, the greater the probability that he supports larger income differences as incentives for individual effort. This relationship bears consequences on the individual’s willingness to work.

Keywords: freedom autonomy; inequality; taxation; redistribution; political economy (search for similar items in EconPapers)
JEL-codes: D31 E62 H2 P16 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:rpo:ripoec:y:2012:i:3:p:29-49

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