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Who Supports Redistribution?

Fumio Ohtake () and Jun Tomioka

ISER Discussion Paper from Institute of Social and Economic Research, Osaka University

Abstract: Using an original dataset, we investigated the determinants of individual preferences over income redistribution in Japan. Although income level is negatively correlated with support for redistribution, it does not explain much; there are other important factors, which relate to dynamics and uncertainty such as income risk. Even after controlling for income, both risk-averse individuals and those who expect to be unemployed in the future favor greater redistribution. Interaction of aging and mobility proved important. Relatively poor elderly, who presumably have few prospects of upward mobility, strongly support greater redistribution, whereas younger people are less sympathetic to such a policy.

Date: 2004-05
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