Perceptions of own social class and local affluence: Effects on preferences for redistribution

Javier Olivera () and Paola Villa-Paro ()
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Javier Olivera: Luxembourg Institute of Socio-Economic Research; National Bank of Belgium, and Pontificia Universidad Catolica del Peru
Paola Villa-Paro: University of Michigan

No 690, Working Papers from ECINEQ, Society for the Study of Economic Inequality

Abstract: We conducted an online survey experiment in Lima to study how perceptions of social class shape support for economic redistribution. Participants were randomly informed about either their actual socio-economic status (SES) or the true share of affluent households in their district. Respondents substantially overestimated their own SES and, to a lesser extent, the prevalence of affluent households. Correcting these misperceptions generally increased support for redistribution, with no effect on a wealth-tax proposal. Effects were especially strong when respondents had misjudged their SES by two or more levels: even those predisposed against redistribution (e.g., right-leaning, individualistic, or sceptical of government) increased their support. Similar patterns also emerged when correcting beliefs about the local distribution of SES.

Keywords: Preferences for redistribution; inequality perceptions; beliefs; wealth taxes; Peru (search for similar items in EconPapers)
JEL-codes: D31 D63 E62 H24 H53 (search for similar items in EconPapers)
Pages: pages
Date: 2026-02
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