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Preferences for redistribution and social structure

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  • SCHOKKAERT, Erik

    ()
    (Department of Economics, KU Leuven; Université catholique de Louvain, CORE, Belgium)

  • TRUYTS, Tom

    ()
    (CEREC, Saint Louis University; Université catholique de Louvain, CORE, Belgium)

Abstract

We model inter-individual differences in preferences for redistribution as a function of (a) self-interest; (b) stable ideological traits; (c) subjective perceptions of the relative importance of the main determinants of income differences (luck, effort, talent). Individuals base the latter on information obtained from their reference group. We analyse the consequences for redistributive preferences of homophilous reference group formation based on talent. We argue that our theoretical results make it possible to understand and integrate some of the main insights from the empirical literature. We illustrate with GSS data from 1987 how our model may help in structuring empirical work.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2014001.

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Date of creation: 12 Feb 2014
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Handle: RePEc:cor:louvco:2014001

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Keywords: D30; D63; D70;

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  7. Bénabou, Roland & Ok, Efe, 1997. "Social Mobility and the Demand for Redistribution : the POUM Hypothesis," IDEI Working Papers 78, Institut d'Économie Industrielle (IDEI), Toulouse, revised 1999.
  8. Maria Grazia Pittau & Riccardo Massari & Roberto Zelli, 2013. "Hierarchical Modelling of Disparities in Preferences for Redistribution," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(4), pages 556-584, 08.
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  10. Andreas Georgiadis & Alan Manning, 2007. "Spend It Like Beckham? Inequality and Redistribution in the UK, 1983-2004," CEP Discussion Papers dp0816, Centre for Economic Performance, LSE.
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  17. Fleurbaey, Marc, 2012. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199653591.
  18. Cruces, Guillermo & Perez-Truglia, Ricardo & Tetaz, Martin, 2013. "Biased perceptions of income distribution and preferences for redistribution: Evidence from a survey experiment," Journal of Public Economics, Elsevier, vol. 98(C), pages 100-112.
  19. Roland Iwan Luttens & Marie-Anne Valfort, 2012. "Voting for Redistribution under Desert-Sensitive Altruism," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(3), pages 881-907, 09.
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