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Group income and individual preferences for redistribution

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  • Jeff Quattrociocchi

Abstract

This paper empirically examines the relationship between group income and an individual's preferences for redistribution. First, I develop a theoretical framework where an individual's identity is strengthened by the status of their group. Then, utilizing data from the US General Social Survey, I find evidence that the average incomes of one's ethnic and religious groups are negatively correlated with one's preferences for redistribution. Controlling for household income and a number of other individual‐level characteristics and additional controls, I find that a standard deviation increase in the average income of one's social groups correlates to a weakening of an individual's preferences for redistribution by 7% to 8%. This result is robust to the inclusion of rich controls and alternate measures of group status as well as a number of robustness checks, such as sample restrictions and the use of additional data. Revenu du groupe et préférences d’un individu pour la redistribution. Ce mémoire examine la relation entre le revenu du groupe et les préférences de l’individu membre du groupe pour la redistribution. D’abord, on développe un cadre théorique où le sens de l’identité de l’individu est renforcé par le statut du groupe. Et puis, à l’aide de données du General Social Survey des États‐Unis, on montre que les revenus moyens des groupes ethniques et religieux auquel appartient l’individu sont co‐reliés négativement avec les préférences de l’individu pour la redistribution. En contrôlant pour le revenu du ménage, et pour un nombre d’autres caractéristiques au niveau individuel et d’autres variables, on montre qu’un accroissement d’un écart‐type dans le revenu moyen du groupe social auquel appartient l’individu est co‐relié à une réduction des préférences de l’individu pour le redistribution de l’ordre de 7 % à 8 %. Ce résultat est robuste en ce sens qu’il persiste quand on impose des contrôles de standardisation importants, quand on utilise des mesures de rechange du statut du groupe, ainsi que quand on impose des tests de robustesse tels que des restrictions sur la nature de l’échantillon et l’utilisation de données additionnelles.

Suggested Citation

  • Jeff Quattrociocchi, 2018. "Group income and individual preferences for redistribution," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 51(4), pages 1386-1418, November.
    • Handle: RePEc:wly:canjec:v:51:y:2018:i:4:p:1386-1418
    DOI: 10.1111/caje.12358
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    References listed on IDEAS

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    5. Erzo F. P. Luttmer, 2001. "Group Loyalty and the Taste for Redistribution," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 500-528, June.
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    7. 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.
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    Cited by:

    1. Eiji Yamamura, 2021. "Where do I rank? Am I happy?: learning income position and subjective-wellbeing in an internet experiment," Papers 2107.11185, arXiv.org.
    2. Eiji Yamamura, 2021. "Information of income position and its impact on perceived tax burden and preference for redistribution: An Internet Survey Experiment," Papers 2106.11537, arXiv.org.

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