Beyond Income: Understanding Preferences for Redistribution Among the Top 1%

Matías Strehl Pessina (), Marcelo Bergolo and Martin Leites
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Matías Strehl Pessina: Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía

No 24-13, Documentos de Trabajo (working papers) from Instituto de Economía - IECON

Abstract: Do top-income individuals support different levels of redistribution compared to the rest of society? If so, what drives these differences? We address these questions using a novel dataset combining administrative tax records with unique survey data on the social and economic preferences of workers in Uruguay. We document a marked decline in support for redistribution among the Top 1% of the income distribution. By comparing this group to the Top 50-2%, we show that differences in redistribution support are not solely explained by income or demographics. A set of beliefs, perceptions, and views, including political ideology, meritocratic beliefs, and views on government, account for much of the observed differences. Instead, a set of behavioral traits and social preferences, such as altruism and risk aversion, measured through incentivized online games, contribute little to explaining the gap. Finally, the differences in support for redistribution persist even when comparing the Top 1% with other high-income groups. Together, these findings suggest that the Top 1% is a distinct group with preferences for redistribution that differ from the rest of society, even from other high-income groups

Keywords: Top-income individuals; Perceptions; Behavioral traits; Preferences for redistribution; Beliefs; Social preferences (search for similar items in EconPapers)
JEL-codes: D31 D63 D91 H20 H30 (search for similar items in EconPapers)
Pages: 114 pages
Date: 2024-10
New Economics Papers: this item is included in nep-pol and nep-pub
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https://hdl.handle.net/20.500.12008/46538

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