The redistributive preferences of the well-off

Elvire Guillaud and Michaël Zemmour ()
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Michaël Zemmour: CLERSE, Université de Lille

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: We argue that the structure of inequality (not only its level) has an impact on redistributive preferences. We test this argument on the well-off, as they stand in a pivotal position between households that have a reduced capacity to contribute to taxation due to limited labour income, and households with greater facility to achieve fiscal optimization thanks to capital income. Inequality is measured at different locations of the income distribution, nearby the income position of the well-off. Attitudes are measured through ISSP international survey, fielded from 1985 to 2006 across 19 countries. Consistent with Albert Hirschman's ‘tunnel effect’, our results show that support for redistribution amongst the well-off is conditioned by their prospect of mobility in both directions, proxied by the change in inequality next to them. Support amongst the well-off increases when their expected cost of downgrading rises, while it decreases when top incomes move further away in the income distribution

Keywords: Preferences for redistribution; Inequality; Tunnel effect; Well-off (search for similar items in EconPapers)
JEL-codes: D31 D63 H23 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2017-10
New Economics Papers: this item is included in nep-pbe
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ftp://mse.univ-paris1.fr/pub/mse/CES2017/17050.pdf (application/pdf)

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Working Paper: The redistributive preferences of the well-off (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:17050

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