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The redistributive consequences of segregation and misperceptions

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  • Windsteiger, Lisa

Abstract

In this paper I present a model in which an increase in income inequality can lead to a decrease in voters’ demand for redistribution. In my model, people sort into groups according to income and as a result they become biased about the shape of the income distribution. I demonstrate that an increase in inequality can lead to a decrease in perceived inequality in the presence of segregation, and hence to a fall in people’s support for redistribution.

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  • Windsteiger, Lisa, 2022. "The redistributive consequences of segregation and misperceptions," European Economic Review, Elsevier, vol. 144(C).
    • Handle: RePEc:eee:eecrev:v:144:y:2022:i:c:s001429212200023x
    DOI: 10.1016/j.euroecorev.2022.104073
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    Cited by:

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    2. Martinangeli, Andrea F.M. & Windsteiger, Lisa, 2023. "Immigration vs. poverty: Causal impact on demand for redistribution in a survey experiment," European Journal of Political Economy, Elsevier, vol. 78(C).
    3. Yuki, Kazuhiro, 2023. "Social Identity, Redistribution, and Development," MPRA Paper 115965, University Library of Munich, Germany.
    4. Nicole Oetke & Maria Norkus & Jan Goebel, 2023. "Assessing the Effects of District-Level Segregation on Meritocratic Beliefs in Germany," Social Sciences, MDPI, vol. 12(7), pages 1-29, June.
    5. Licia Bobzien, 2023. "Income Inequality and Political Trust: Do Fairness Perceptions Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 505-528, September.

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    More about this item

    Keywords

    Personal income distribution; Inequality; Redistribution; Segregation; Misperceptions;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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