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Capital vs. labour: The effect of income sources on attitudes toward the top 1 percent

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  • Barrera-Rodríguez, Oscar
  • Chávez, Emmanuel

Abstract

We conduct a randomized online survey to study how information on the share of top earners' income derived from capital and labour affects attitudes toward top earners. Our findings re-veal that: (i) At the baseline, respondents tend to overestimate the income of the top 1 percent, have no clear priors on their capital vs. labor shares, and want them to pay a higher income tax rate than the current one; (ii) quantitative information on top earners’ income sources leads people to have more unfavorable views toward the rich; (iii) individuals most responsive to our treatments vote for left-wing candidates and have egalitarian notions of justice.

Suggested Citation

  • Barrera-Rodríguez, Oscar & Chávez, Emmanuel, 2025. "Capital vs. labour: The effect of income sources on attitudes toward the top 1 percent," European Journal of Political Economy, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:poleco:v:88:y:2025:i:c:s0176268025000448
    DOI: 10.1016/j.ejpoleco.2025.102684
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    More about this item

    Keywords

    Top 1 percent; Income tax; Capital income shares; Top earners;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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