The effect of macroeconomic and social conditions on the demand for redistribution: A pseudo panel approach

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Abstract

This paper analyses the effect of macroeconomic and social conditions on the demand for redistribution. Using a synthetic cohort design to generate panel data at the level of socio-demographic groups, analysis of fives waves of data from the European Social Survey (2002-2010) shows that differences across countries in macroeconomic and social conditions have an effect on the demand for redistribution. Consistent with theoretical expectations, economic growth generates a lower demand for redistribution, while higher income inequality generates a higher demand. By contrast, differences across countries in unemployment levels and social expenditure are unrelated to the demand for redistribution. The analysis also suggests that empirical results depend to a considerable extent on the assumptions underlying different methodological approaches.

Original languageDanish
JournalJournal of European Social Policy
Volume23
Issue number2
Pages (from-to)149-163
Number of pages15
ISSN0958-9287
DOIs
Publication statusPublished - May 2013

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