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Preferences for redistribution--A country comparison of fairness judgements

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  • Isaksson, Ann-Sofie
  • Lindskog, Annika

Abstract

This paper seeks to explain within- and between-country variation in redistributive preferences in terms of self-interest concerns and an input-based concept of fairness, which we examine by looking at the effects of beliefs regarding the causes of income differences. Results of estimations based on data for 25 countries indicate that both factors are indeed important determinants of redistribution support, in line with hypothesised patterns. We find that while differences in beliefs on what causes income differences seem to be important for explaining within-country variation in redistributive preferences, they do little to explain between-country differences. Differences in the effects of holding certain beliefs, however, are important for explaining between-country variation in redistributive preferences, suggesting considerable heterogeneity across societies in what is considered as fair.

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  • Isaksson, Ann-Sofie & Lindskog, Annika, 2009. "Preferences for redistribution--A country comparison of fairness judgements," Journal of Economic Behavior & Organization, Elsevier, vol. 72(3), pages 884-902, December.
    • Handle: RePEc:eee:jeborg:v:72:y:2009:i:3:p:884-902
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    Cited by:

    1. Kuhn, Andreas, 2012. "Redistributive Preferences, Redistribution, and Inequality: Evidence from a Panel of OECD Countries," IZA Discussion Papers 6721, Institute of Labor Economics (IZA).
    2. Konrad, Kai A. & Morath, Florian, 2010. "Social mobility and redistributive taxation," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2010-15, WZB Berlin Social Science Center.
    3. Andreas Kuhn, 2012. "Redistributive Preferences, Redistribution and Inequality: Evidence from a Panel of OECD Countries," NRN working papers 2012-08, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    4. Bargain, Olivier & Dolls, Mathias & Neumann, Dirk & Peichl, Andreas & Siegloch, Sebastian, 2011. "Tax-benefit systems in Europe and the US: between equity and efficiency," EUROMOD Working Papers EM2/11, EUROMOD at the Institute for Social and Economic Research.
    5. Gualtieri, Giovanni & Nicolini, Marcella & Sabatini, Fabio, 2019. "Repeated shocks and preferences for redistribution," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 53-71.
    6. Tinghög, Gustav & Andersson, David, 2016. "Are Individuals Luck Egalitarians?: An Experiment on the Influence of Brute and Option Luck on Social Preferences," LiU Working Papers in Economics 1, Linköping University, Division of Economics, Department of Management and Engineering.
    7. Neher, Frank, 2012. "Preferences for redistribution around the world," Discussion Papers 2012/2, Free University Berlin, School of Business & Economics.
    8. Aggarwal, Raj & Goodell, John W., 2013. "Political-economy of pension plans: Impact of institutions, gender, and culture," Journal of Banking & Finance, Elsevier, vol. 37(6), pages 1860-1879.
    9. Mark Taylor & Dave O’Brien, 2017. "‘Culture is a Meritocracy’: Why Creative Workers’ Attitudes may Reinforce Social Inequality," Sociological Research Online, , vol. 22(4), pages 27-47, December.
    10. Olivier Bargain & Mathias Dolls & Dirk Neumann & Andreas Peichl & Sebastian Siegloch, 2014. "Comparing inequality aversion across countries when labor supply responses differ," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(5), pages 845-873, October.
    11. Gilles Le Garrec, 2018. "Fairness, social norms and the cultural demand for redistribution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 50(2), pages 191-212, February.
    12. Kuhn, Andreas, 2015. "The Individual Perception of Wage Inequality: A Measurement Framework and Some Empirical Evidence," IZA Discussion Papers 9579, Institute of Labor Economics (IZA).
    13. Giovanni Gualtieri & Marcella Nicolini & Fabio Sabatini & Luca Zamparelli, 2019. "Repeated Shocks and Preferences for Redistribution," Working Papers 2018.15, Fondazione Eni Enrico Mattei.
    14. Erik Schokkaert & Tom Truyts, 2017. "Preferences for redistribution and social structure," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 49(3), pages 545-576, December.
    15. Tina Haussen, 2018. "Intra-Household Income Inequality and Preferences for Redistribution," Jena Economic Research Papers 2018-004, Friedrich-Schiller-University Jena.
    16. Tina Haussen, 2019. "Intra-household income inequality and preferences for redistribution," Review of Economics of the Household, Springer, vol. 17(2), pages 499-530, June.
    17. Sophie Harnay & Elisabeth Tovar, 2017. "Obeying vs. resisting unfair laws. A structural analysis of the internalization of collective preferences on redistribution using classification trees and random forests," EconomiX Working Papers 2017-34, University of Paris Nanterre, EconomiX.
    18. Gualtieri, Giovanni & Nicolini, Marcella & Sabatini, Fabio & Zamparelli, Luca, 2018. "Natural disasters and demand for redistribution: lessons from an earthquake," MPRA Paper 86445, University Library of Munich, Germany.
    19. Ann-Sofie Isaksson, 2011. "Social divisions and institutions: assessing institutional parameter variation," Public Choice, Springer, vol. 147(3), pages 331-357, June.
    20. Olivier Bargain & Mathias Dolls & Dirk Neumann & Andreas Peichl & Sebastian Siegloch, 2011. "Tax-Benefit Systems in Europe and the US: Between Equity and Efficiency," CESifo Working Paper Series 3534, CESifo.
    21. Neher, Frank, 2012. "Preferences for Redistribution around the World," Working Papers 26/2012, Universidade Portucalense, Centro de Investigação em Gestão e Economia (CIGE).
    22. Niclas Berggren, 2012. "The Calculus of Consent: some Swedish connections," Public Choice, Springer, vol. 152(3), pages 313-321, September.
    23. Andreas Kuhn, 2012. "Redistributive preferences, redistribution, and inequality: Evidence from a panel of OECD countries," ECON - Working Papers 084, Department of Economics - University of Zurich.
    24. Lionel Page & Daniel G. Goldstein, 2016. "Subjective beliefs about the income distribution and preferences for redistribution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(1), pages 25-61, June.
    25. Roberto Iacono & Marco Ranaldi, 2019. "Perceptions of Inequality and Redistribution: A Note," Post-Print halshs-02042330, HAL.

    More about this item

    Keywords

    Redistribution preferences Fairness;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles

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