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Why do Redistributive Policies Differ across Countries? Analyzing the Multiple Dimensions of Preferences for Redistribution

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  • Ryo Kambayashi
  • Sébastien Lechevalier

Abstract

Why are some countries characterized by more income redistribution than others? Based mainly on Trans‐Atlantic comparisons, the literature has referred to dissimilarities in preferences for redistribution. In this article, we extend this literature by focusing on multiple dimensions of redistributive preferences and adding Japan to the comparison. More precisely, using data for France, the US, and Japan from ISSP 2009, we apply cross‐sectional regression models and the Blinder–Oaxaca decomposition technique to address two distinct questions about preferences for redistribution—the role of government in reducing income gaps and tax progressivity. We find that each of these dimensions are related to different mechanisms: i.e. one depends more on individuals’ specific situations, such as income/wealth and social beliefs, as stressed in the literature, whereas the other depends more on an unobservable but common factor within a country, such as the historical and cultural background of each society.

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  • Ryo Kambayashi & Sébastien Lechevalier, 2022. "Why do Redistributive Policies Differ across Countries? Analyzing the Multiple Dimensions of Preferences for Redistribution," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(4), pages 1032-1057, December.
  • Handle: RePEc:bla:revinw:v:68:y:2022:i:4:p:1032-1057
    DOI: 10.1111/roiw.12541
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    References listed on IDEAS

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    1. Roland Benabou & Efe A. Ok, 2001. "Social Mobility and the Demand for Redistribution: The Poum Hypothesis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(2), pages 447-487.
    2. Elvire Guillaud, 2013. "Preferences for redistribution: an empirical analysis over 33 countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 11(1), pages 57-78, March.
    3. Erzo F. P. Luttmer & Monica Singhal, 2011. "Culture, Context, and the Taste for Redistribution," American Economic Journal: Economic Policy, American Economic Association, vol. 3(1), pages 157-179, February.
    4. Lydia Assouad & Amory Gethin & Thomas Piketty & Juliet-Nil Uraz, 2021. "Political Cleavages and Social Inequalities in Algeria, Iraq, and Turkey, 1990-2019," World Inequality Lab Working Papers halshs-03215898, HAL.
    5. Amable, Bruno, 2003. "The Diversity of Modern Capitalism," OUP Catalogue, Oxford University Press, number 9780199261147.
    6. Alesina, Alberto & Giuliano, Paola, 2009. "Preferences for Redistribution," IZA Discussion Papers 4056, Institute of Labor Economics (IZA).
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    Cited by:

    1. Yuchen Huang & Zhexun Mo, 2022. "Meritocracy as a WEIRD Phenomenon: Fairness Reasoning and Redistributive Preferences across the World," World Inequality Lab Working Papers halshs-04129246, HAL.
    2. Yuchen Huang & Zhexun Mo, 2022. "Meritocracy as a WEIRD Phenomenon: Fairness Reasoning and Redistributive Preferences across the World," Working Papers halshs-04129246, HAL.

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