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Social capital, household income, and preferences for income redistribution

  • Yamamura, Eiji

This paper explores how social capital influences individual preferences for income redistribution. Social capital is measured by participation in community activities. After controlling for individual characteristics, I find that people are more likely to express preferences for income redistribution in areas with higher rates of community participation. This is more clearly so in high-income groups than in low-income groups. I infer that individuals' preferences for income redistribution are influenced by psychological externalities. Because the data is from surveys, I also consider the role of expressive behavior. I also consider the hypothesis that behavior is influenced by social distance.

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File URL: http://www.sciencedirect.com/science/article/pii/S0176268012000389
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Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 28 (2012)
Issue (Month): 4 ()
Pages: 498-511

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Handle: RePEc:eee:poleco:v:28:y:2012:i:4:p:498-511
DOI: 10.1016/j.ejpoleco.2012.05.010
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505544

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