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: Departamento de Economía de la Pontificia Universidad Católica del Perú
Paola Villa-Paro: Universidad de Michigan

No 2025-551, Documentos de Trabajo / Working Papers from Departamento de Economía - Pontificia Universidad Católica del Perú

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. Correctingthese 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. Palabras claves: Preferencias for redistribución, percepciones de desigualdad, creencias, impuesto a la riqueza, Peru. JEL Classification-JE: H24, D31, D63, E62, H53

Keywords: Preferences for redistribution; inequality perceptions; beliefs; wealth taxes; Peru (search for similar items in EconPapers)
Pages: 66
Date: 2025
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