Experienced inequality and preferences for redistribution

TY - JOUR

T1 - Experienced inequality and preferences for redistribution

AU - Roth, Christopher

AU - Wohlfart, Johannes

PY - 2018/11

Y1 - 2018/11

N2 - We examine whether individuals' experienced levels of income inequality affect their preferences for redistribution. We use several large nationally representative datasets to show that people who have experienced higher inequality during their lives are less in favor of redistribution, after controlling for income, demographics, unemployment experiences and current macroeconomic conditions. They are also less likely to support left-wing parties and to consider the prevailing distribution of incomes to be unfair. We provide evidence that these findings do not operate through extrapolation from own circumstances, perceived relative income or trust in the political system, but seem to operate through the respondents' fairness views.

AB - We examine whether individuals' experienced levels of income inequality affect their preferences for redistribution. We use several large nationally representative datasets to show that people who have experienced higher inequality during their lives are less in favor of redistribution, after controlling for income, demographics, unemployment experiences and current macroeconomic conditions. They are also less likely to support left-wing parties and to consider the prevailing distribution of incomes to be unfair. We provide evidence that these findings do not operate through extrapolation from own circumstances, perceived relative income or trust in the political system, but seem to operate through the respondents' fairness views.

KW - Fairness

KW - Inequality

KW - Macroeconomic experiences

KW - Redistribution

U2 - 10.1016/j.jpubeco.2018.09.012

DO - 10.1016/j.jpubeco.2018.09.012

M3 - Journal article

AN - SCOPUS:85054878092

SN - 0047-2727

VL - 167

SP - 251

EP - 262

JO - Journal of Public Economics

JF - Journal of Public Economics

ER -