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Preferences for Redistribution in the Land of Opportunities

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Author Info
Alesina, Alberto F
La Ferrara, Eliana

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Abstract

The poor favour redistribution and the rich oppose it, but that is not all. Social mobility may make some of today’s poor into tomorrow’s rich and since redistributive policies do not change often, individual preferences for redistribution should depend on the extent and the nature of social mobility. We estimate the determinants of preferences for redistribution using individual level data from the US, and we find that individual support for redistribution is negatively affected by social mobility. Furthermore, the impact of mobility on attitudes towards redistribution is affected by individual perceptions of fairness in the mobility process. People who believe that the American society offers equal opportunities to all are more averse to redistribution in the face of increased mobility. On the other hand, those who see the social rat race as a biased process do not see social mobility as an alternative to redistributive policies.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3155.

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Date of creation: Jan 2002
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Handle: RePEc:cpr:ceprdp:3155

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Related research
Keywords: POUM redistribution social mobility

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Find related papers by JEL classification:
H10 - Public Economics - - Structure and Scope of Government - - - General
J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion

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  3. Peltzman, Sam, 1980. "The Growth of Government," Journal of Law & Economics, University of Chicago Press, vol. 23(2), pages 209-87, October.
    Other versions:
  4. 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:
  5. Persson, Torsten & Tabellini, Guido, 1997. "Political Economics and Macroeconomic Policy," CEPR Discussion Papers 1759, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  6. Alberto Alesina & Stephan Danninger & Massimo Rostagno, 1999. "Redistribution Through Public Employment: The Case of Italy," NBER Working Papers 7387, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Roland Benabou & Efe A. Ok, 2001. "Mobility as Progressivity: Ranking Income Processes According to Equality of Opportunity," NBER Working Papers 8431, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Piketty, Thomas, 1995. "Social Mobility and Redistributive Politics," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 551-84, August. [Downloadable!] (restricted)
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  11. Gardiner, Karen & Hills, John, 1999. "Policy Implications of New Data on Income Mobility," Economic Journal, Royal Economic Society, vol. 109(453), pages F91-111, February. [Downloadable!] (restricted)
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    Other versions:
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  15. Maoz, Yishay D & Moav, Omer, 1999. "Intergenerational Mobility and the Process of Development," Economic Journal, Royal Economic Society, vol. 109(458), pages 677-97, October. [Downloadable!] (restricted)
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  18. Fields, Gary S. & Ok, Efe A., 1996. "The Meaning and Measurement of Income Mobility," Journal of Economic Theory, Elsevier, vol. 71(2), pages 349-377, November. [Downloadable!] (restricted)
  19. James M. Poterba, 1996. "Demographic Structure and the Political Economy of Public Education," NBER Working Papers 5677, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  24. Alberto Alesina & Edward Glaeser & Bruce Sacerdote, 2001. "Why Doesn't the US Have a European-Style Welfare System?," NBER Working Papers 8524, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  25. Giacomo Corneo, 2000. "Inequality and the State: Comparing U.S. and German Preferences," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
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