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Aversion to inequality in Italy and its determinants

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  • Vincenzo Atella
  • Jay Coggins
  • Federico Perali

Abstract

The main goal of this paper is to estimate the preferences of the Italian society towards equity in order to verify whether preferences (i) have changed across the years, and (ii) can be related to specific socio-demographic characteristics. Introducing equity concerns in the implementation of economic policies is a fundamental problem faced by both economists and policy makers. This paper uses a social welfare function à la Jorgenson and Slesnick to estimate society’s aversion towards inequality by implement in a voting scheme for compiling individuals’ equity preferences in to a social choice by majority rule. The results show that preferences are highly polarized toward a low and a high concern for equity aversion and that this concern is significantly related with several sociodemographic characteristics. Among them, income plays an important role with richer people tending to favor less equity. Results also show that preferences towards equity have changed across the years. Copyright Kluwer Academic Publishers 2005

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Bibliographic Info

Article provided by Springer in its journal The Journal of Economic Inequality.

Volume (Year): 2 (2005)
Issue (Month): 2 (January)
Pages: 117-144

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Handle: RePEc:kap:jecinq:v:2:y:2005:i:2:p:117-144

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Web page: http://springerlink.metapress.com/link.asp?id=111137

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Keywords: inequality; majority rule; social welfare function; voting scheme;

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Cited by:
  1. Bargain, Olivier & Dolls, Mathias & Neumann, Dirk & Peichl, Andreas & Siegloch, Sebastian, 2011. "Tax-Benefit Systems in Europe and the US: Between Equity and Efficiency," IZA Discussion Papers 5440, Institute for the Study of Labor (IZA).
  2. repec:ese:emodwp:em2-11 is not listed on IDEAS

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