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Preferences for redistribution in Europe

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  • Javier Olivera

Abstract

This paper uses pseudo panel techniques and a fixed effects estimator to analyse the determinants of preferences for redistribution in 34 European countries over the period 2002–2012. The data is drawn from the six available waves of the European Social Survey. The main result is that changes in income inequality positively affect changes in preferences for redistribution over time. Though this result is predicted by standard political economy models, it has found little previous empirical support. This study shows that, at least in Europe, growing income inequality leads to more individual support for redistribution. The empirical results hold after performing a variety of robustness checks regarding the construction of pseudo panels, the use of lags and different measures of income inequality. Copyright Olivera. 2015

Suggested Citation

  • Javier Olivera, 2015. "Preferences for redistribution in Europe," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-18, December.
  • Handle: RePEc:spr:izaels:v:4:y:2015:i:1:p:1-18:10.1186/s40174-015-0037-y
    DOI: 10.1186/s40174-015-0037-y
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    Cited by:

    1. Debora Di Gioacchino & Alina Verashchagina, 2017. "Mass media and attitudes to inequality," Working Papers 178, University of Rome La Sapienza, Department of Public Economics.
    2. Nigel Kragten & Jesper Rözer, 2017. "The Income Inequality Hypothesis Revisited: Assessing the Hypothesis Using Four Methodological Approaches," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(3), pages 1015-1033, April.
    3. Abigail Mcknight & Brian Nolan, 2012. "GINI Intermediate Report WP 4: Social Impacts of Inequalities," GINI Discussion Papers wp4, AIAS, Amsterdam Institute for Advanced Labour Studies.
    4. Andreoli, Francesco & Olivera, Javier, 2020. "Preferences for redistribution and exposure to tax-benefit schemes in Europe," European Journal of Political Economy, Elsevier, vol. 63(C).
    5. 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.
    6. Mr. David Coady & Devin D'Angelo & Brooks Evans, 2019. "Fiscal Redistribution and Social Welfare," IMF Working Papers 2019/051, International Monetary Fund.
    7. Di Gioacchino, Debora & Verashchagina, Alina, 2020. "Mass media and preferences for redistribution," European Journal of Political Economy, Elsevier, vol. 63(C).
    8. Dilara Tosu & Montserrat Vilalta-Bufí, 2021. "Segregation and preferences for redistribution," UB Economics Working Papers 2021/408, Universitat de Barcelona, Facultat d'Economia i Empresa, UB School of Economics.
    9. Pfarr, Christian & Schmid, Andreas & Ulrich, Volker, 2013. "You can't always get what you want - East and West Germans' attitudes and preferences regarding the welfare state," MPRA Paper 47240, University Library of Munich, Germany.
    10. Tingyun Chen & Jean-Jacques Hallaert & Alexander Pitt & Haonan Qu & Maximilien Queyranne & Alaina Rhee & Anna Shabunina & Jérôme Vandenbussche & Irene Yackovlev, 2018. "Inequality and Poverty across Generations in the European Union," IMF Staff Discussion Notes 18/01, International Monetary Fund.
    11. Javier Olivera, 2014. "Preferences for redistribution after the economic crisis," Economics and Business Letters, Oviedo University Press, vol. 3(3), pages 137-145.
    12. Bilal El Rafhi & Alexandre Volle, 2019. "The Effect of the Arab Spring on the Preferences for Redistribution in Egypt," Post-Print hal-02101392, HAL.
    13. Sylwia Pieńkowska-Kamieniecka & Joanna Rutecka-Góra & Damian Walczak, 2019. "Willingness to redistribute: the case of Poland," Public Sector Economics, Institute of Public Finance, vol. 43(3), pages 247-266.
    14. Schläpfer, Felix & Baur, Ivo, 2017. "Does CAP spending reflect taxpayer preferences? An analysis of expenditures for public goods and income redistribution in relation to preference indicators," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 260625, European Association of Agricultural Economists.
    15. Tom VanHeuvelen & Kathy Copas, 2018. "The Intercohort Dynamics of Support for Redistribution in 54 Countries, 1985–2017," Societies, MDPI, Open Access Journal, vol. 8(3), pages 1-22, August.
    16. Colagrossi, Marco & Karagiannis, Stelios & Raab, Roman, 2019. "The Median Voter Takes it All: Preferences for Redistribution and Income Inequality in the EU-28," Working Papers 2019-06, Joint Research Centre, European Commission (Ispra site).
    17. Andreea-Oana Iacobuță & Mihaela Ifrim, 2020. "Welfare Mentality as a Challenge to European Sustainable Development. What Role for Youth Inclusion and Institutions?," Sustainability, MDPI, Open Access Journal, vol. 12(9), pages 1-25, April.
    18. Ekaterina Borisova & Andrei Govorun & Denis Ivanov, 2016. "Bridging or Bonding? Preferences for Redistribution and Social Capital in Russia," Working Papers 05/2016, IMT School for Advanced Studies Lucca, revised Nov 2016.
    19. JaeYoul Shin, 2018. "Relative Deprivation, Satisfying Rationality, and Support for Redistribution," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 140(1), pages 35-56, November.
    20. Laméris, Maite D. & Garretsen, Harry & Jong-A-Pin, Richard, 2020. "Political ideology and the intragenerational prospect of upward mobility," European Journal of Political Economy, Elsevier, vol. 62(C).

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    More about this item

    Keywords

    D31; D63; D72; H20; Redistribution; Income Inequality; Preferences for redistribution; Pseudo panels;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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