Why do preferences for redistribution differ across countries? An experimental analysis

Gianluca Grimalda, Francesco Farina, Anna Conte and Ulrich Schmidt

No 2230, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: We test for different theories purporting to explain cross-country differences in income redistribution through standardized experimental choices. US Americans and Italians demand less redistribution than Norwegians and Germans, regardless of whether self-interest is relevant. Those earning (or expecting to earn) below-median incomes behave as "libertarians" more frequently in the US and Italy than in Germany and Norway. Above-the-median earners behave similarly across countries. Higher overconfidence by US Americans and Italians further reduces their demand for redistribution under uncertainty. The "Prospect of Upward Mobility" hypothesis holds similarly in all countries. US Americans do not reward individual merit more than others.

Keywords: Income Redistribution; Inequality; Experiment; Merit; Overconfidence; Prospects of Upward Mobility; Cross-country research (search for similar items in EconPapers)
JEL-codes: C92 D63 H23 O57 (search for similar items in EconPapers)
Date: 2023, Revised 2023
New Economics Papers: this item is included in nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:2230

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