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Collective negative shocks and preferences for redistribution: Evidence from the COVID-19 crisis in Germany

Luna Bellani, Andrea Fazio () and Francesco Scervini

The Journal of Economic Inequality, 2023, vol. 21, issue 2, No 5, 403 pages

Abstract: Abstract Using new data from a three-wave panel survey administered in Germany between May 2020 and May 2021, this paper studies the impact of a negative shock affecting all strata of the population, such as the development of COVID-19, on preferences for redistribution. Exploiting the plausibly exogenous change in the severity of the infection rate at the county level, we show that, contrary to some theoretical expectations, the worse the crisis, the less our respondents expressed support for redistribution. We provide further evidence that this is not driven by a decrease in inequality aversion but might be driven by the individuals’ level of trust.

Keywords: Preference for redistribution; Inequality aversion; COVID-19; D31; D63; D72 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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Working Paper: Collective negative shocks and preferences for redistribution: Evidence from the COVID-19 crisis in Germany (2022) Downloads
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DOI: 10.1007/s10888-022-09558-2

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