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Punching up or Punching down? How Stereotyping the Rich and the Poor Impacts Redistributive Preferences in Germany

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  • Matthias Diermeier
  • Madeleine L. Fischer
  • Judith Niehues

Abstract

Redistribution and the welfare state have been linked by academic discourse to narratives that portray specific societal groups as ‘deserving’ or ‘undeserving’. The present analysis contributes to this scholarship in a twofold manner. First, it provides a holistic view on the beneficiaries and benefactors of welfare and asks how the public perception of the rich and the poor drives redistributive preferences. It is revealed that these beliefs, particularly about the ‘deserving’ poor, are significant determinants of strong redistributive preferences. Despite powerful prevailing prejudices about the rich, support for redistribution in Germany is not motivated by the urge to castigate this group for their affluence. Second, we are interested in the distribution of the different moralistic beliefs about the rich and the poor over socio-demographic characteristics. Regarding stereotypical beliefs about the poor, we quantify the phenomenon of ‘punching down’, performed by those immediately above the lowest income quintile. In fact, members of the second income quintile show levels of disdain similar to their wealthier counterparts on the other end of the income distribution. On the other hand, moralistic beliefs about the ‘deserving poor’ are equally held across different socio-economic levels. Implications and limitations of our findings are also discussed.

Suggested Citation

  • Matthias Diermeier & Madeleine L. Fischer & Judith Niehues, 2023. "Punching up or Punching down? How Stereotyping the Rich and the Poor Impacts Redistributive Preferences in Germany," SOEPpapers on Multidisciplinary Panel Data Research 1182, DIW Berlin, The German Socio-Economic Panel (SOEP).
    • Handle: RePEc:diw:diwsop:diw_sp1182
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    References listed on IDEAS

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    1. Ilyana Kuziemko & Michael I. Norton & Emmanuel Saez & Stefanie Stantcheva, 2015. "How Elastic Are Preferences for Redistribution? Evidence from Randomized Survey Experiments," American Economic Review, American Economic Association, vol. 105(4), pages 1478-1508, April.
    2. Knell, Markus & Stix, Helmut, 2020. "Perceptions of inequality," European Journal of Political Economy, Elsevier, vol. 65(C).
    3. Barr, Nicholas, 2001. "The Welfare State as Piggy Bank: Information, Risk, Uncertainty, and the Role of the State," OUP Catalogue, Oxford University Press, number 9780199246595, Decembrie.
    4. Vladimir Gimpelson & Daniel Treisman, 2018. "Misperceiving inequality," Economics and Politics, Wiley Blackwell, vol. 30(1), pages 27-54, March.
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    More about this item

    Keywords

    Inequality; welfare state; redistribution; poor; rich; distancing;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis

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