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Does Wealth Reduce Support for Redistribution? Evidence from an Ethiopian Housing Lottery

Author

Listed:
  • Andersen, Asbjørn G.

    (Ragnar Frisch Centre for Economic Research)

  • Franklin, Simon

    (Queen Mary University London)

  • Kotsadam, Andreas

    (Ragnar Frisch Centre for Economic Research)

  • Somville, Vincent

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

  • Villanger, Espen

    (Chr. Michelsen Institute)

  • Getahun, Tigabu

    (EDRI)

Abstract

We provide causal evidence of how an increase in wealth affects support for redistribution and beliefs about the causes of poverty. Exploiting the variation in wealth created by an Ethiopian housing lottery, we show that general attitudes toward redistribution and inequality acceptance are relatively insensitive to economic circumstances although winners are less favorable of taxing homeowners. Further, we find evidence of endogenous beliefs: relative to losers, the wealthier winners are more likely to attribute poverty to character traits and less likely to emphasize the role of luck. We interpret this as evidence of a self-serving bias.

Suggested Citation

  • Andersen, Asbjørn G. & Franklin, Simon & Kotsadam, Andreas & Somville, Vincent & Villanger, Espen & Getahun, Tigabu, 2020. "Does Wealth Reduce Support for Redistribution? Evidence from an Ethiopian Housing Lottery," Discussion Paper Series in Economics 18/2020, Norwegian School of Economics, Department of Economics.
  • Handle: RePEc:hhs:nhheco:2020_018
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    Cited by:

    1. Andrea Fazio, 2021. "Beautiful inequality: Are beautiful people more willing to redistribute?," Working Papers in Public Economics 194, University of Rome La Sapienza, Department of Economics and Law.
    2. Andersen, Asbjørn G. & Kotsadam, Andreas & Somville, Vincent, 2022. "Material resources and well-being — Evidence from an Ethiopian housing lottery," Journal of Health Economics, Elsevier, vol. 83(C).
    3. Nora Yuqian Chen & Yucheng Huang & Zhexun Fred Mo, 2023. "Money is Justice: Experimental Evidence on Non-meritocratic Redistributive Preferences in China," Working Papers halshs-03496033, HAL.
    4. Nora Yuqian Chen & Yucheng Huang & Zhexun Fred Mo, 2023. "Money is Justice: Experimental Evidence on Non-meritocratic Redistributive Preferences in China," PSE Working Papers halshs-03496033, HAL.

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    More about this item

    Keywords

    Inequality; Poverty;

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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