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Political Ideology and the Intragenerational Prospect of Upward Mobility

Maite D. Laméris, Harry Garretsen and Richard Jong-A-Pin ()

No 6987, CESifo Working Paper Series from CESifo Group Munich

Abstract: We examine the effect of prospects of upward mobility (POUM) on the support for redistribution in an intragenerational context. In this context, existing literature so far fails to consider the potential indirect channel via political ideology through which mobility expectations affect redistributive preferences. We address this by including an interaction between income mobility and political ideology, such that the POUM-effect is allowed to vary with political beliefs. We find a robust POUM-effect that is conditional on political preferences. Only for right-wing individuals expected upward income mobility negatively affects support for redistribution. Left-wing individuals on the other hand prefer redistribution, regardless of expected upward income movements.

Keywords: the POUM-effect; political ideology; income mobility; redistribution; preferences (search for similar items in EconPapers)
JEL-codes: D30 D72 J69 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cdm and nep-pol
Date: 2018
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