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What explains preferences for redistribution? Evidence from an international survey

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  • Bonnet, Julien
  • Ciani, Emanuele
  • Grimalda, Gianluca
  • Murtin, Fabrice
  • Pipke, David

Abstract

Income redistribution differs widely across countries. Several theories have been developed to account for such differences. However, we know little about their relative importance. This paper fills this gap, contrasting the main theories of preferences for redistribution in a unified empirical framework. We implement standardized hypothetical choices of income redistribution in nationally representative samples of Germany, Italy, Japan, Slovenia, the UK, and the US. We find that the beliefs in fair opportunities for upward mobility are the strongest predictor of demand for redistribution. Surprisingly, higher trust in government correlates with a lower demand. The perception of immigrants as a threat to society also significantly reduces preferences for redistribution, whereas other factors, such as self-interest, social capital, and incentivized measures of pro-sociality, play lesser roles. We uncover significant cross-country heterogeneity; for instance, beliefs in fair opportunities strongly influence redistribution preferences in the US, UK, and Germany, but are less impactful elsewhere. Our findings reveal limited variability in how theoretical factors relate to redistribution preferences across socio-demographic groups, with notable exceptions. Attitudes towards immigrants have a stronger influence on redistribution preferences among non-right-wing respondents in the US and Germany. Contrary to previous research, beliefs in fair opportunities show no significant differences by political orientation, indicating a widely accepted, ideologically neutral view of fairness.

Suggested Citation

  • Bonnet, Julien & Ciani, Emanuele & Grimalda, Gianluca & Murtin, Fabrice & Pipke, David, 2025. "What explains preferences for redistribution? Evidence from an international survey," European Economic Review, Elsevier, vol. 180(C).
  • Handle: RePEc:eee:eecrev:v:180:y:2025:i:c:s0014292125002004
    DOI: 10.1016/j.euroecorev.2025.105150
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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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