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Spend It Like Beckham?Inequality and Redistribution in the UK, 1983-2004

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Author Info
Andreas Georgiadis
Alan Manning

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Abstract

A main activity of the state is to redistribute resources. Models of the political processgenerally predict that a rise in inequality will lead to more redistribution. This paper showsthat, for the UK in the period 1983-2004, a plausibly exogenous rise in income inequality hasnot been associated with increased redistribution. We then explore this further usingattitudinal data. We show that the demand for redistribution, having shown considerablevariation over time, is at an all-time low. We argue that the decline in the demand forredistribution can mostly be accounted for by an increasing belief in the importance ofincentives though changes in preferences over the distribution of income have been importantin some sub-periods.

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0816.

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Date of creation: Aug 2007
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Handle: RePEc:cep:cepdps:dp0816

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Related research
Keywords: Taxation; Inequality; Redistribution;

Find related papers by JEL classification:
H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior

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  1. Alberto Alesina & George-Marios Angeletos, 2004. "Fairness and Redistribution," Levine's Bibliography 122247000000000283, UCLA Department of Economics. [Downloadable!]
    Other versions:
  2. Roland Benabou, 2000. "Unequal Societies: Income Distribution and the Social Contract," American Economic Review, American Economic Association, vol. 90(1), pages 96-129, March. [Downloadable!] (restricted)
  3. 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. [Downloadable!] (restricted)
    Other versions:
  4. Roberts, Kevin W. S., 1977. "Voting over income tax schedules," Journal of Public Economics, Elsevier, vol. 8(3), pages 329-340, December. [Downloadable!] (restricted)
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  6. David Austen-Smith, 2000. "Redistributing Income under Proportional Representation," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1235-1269, December. [Downloadable!] (restricted)
  7. Roland Bénabou & Efe A. Ok, 2001. "Social Mobility And The Demand For Redistribution: The Poum Hypothesis," The Quarterly Journal of Economics, MIT Press, vol. 116(2), pages 447-487, May. [Downloadable!] (restricted)
    Other versions:
  8. Alberto Alesina & Edward Glaeser & Bruce Sacerdote, 2001. "Why Doesn't the United States Have a European-Style Welfare State?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 32(2001-2), pages 187-278. [Downloadable!]
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  12. Corneo, Giacomo & Gruner, Hans Peter, 2002. "Individual preferences for political redistribution," Journal of Public Economics, Elsevier, vol. 83(1), pages 83-107, January. [Downloadable!] (restricted)
  13. Lena Edlund & Rohini Pande, 2002. "Why Have Women Become Left-Wing? The Political Gender Gap And The Decline In Marriage," The Quarterly Journal of Economics, MIT Press, vol. 117(3), pages 917-961, August. [Downloadable!] (restricted)
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  15. repec:cup:cbooks:9780521671422 is not listed on IDEAS
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  18. Perotti, Roberto, 1996. " Growth, Income Distribution, and Democracy: What the Data Say," Journal of Economic Growth, Springer, vol. 1(2), pages 149-87, June.
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    Other versions:
  20. Romer, Thomas, 1975. "Individual welfare, majority voting, and the properties of a linear income tax," Journal of Public Economics, Elsevier, vol. 4(2), pages 163-185, February. [Downloadable!] (restricted)
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