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The Externalities of Inequality: Fear of Crime and Preferences for Redistribution in Western Europe

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  • David Rueda
  • Daniel Stegmueller

Abstract

Why is the difference in redistribution preferences between the rich and the poor high in some countries and low in others? In this article, we argue that it has a lot to do with the rich and very little to do with the poor. We contend that while there is a general relative income effect on redistribution preferences, the preferences of the rich are highly dependent on the macrolevel of inequality. The reason for this effect is not related to immediate tax and transfer considerations but to a negative externality of inequality: crime. We will show that the rich in more unequal regions in Western Europe are more supportive of redistribution than the rich in more equal regions because of their concern with crime. In making these distinctions between the poor and the rich, the arguments in this article challenge some influential approaches to the politics of inequality.

Suggested Citation

  • David Rueda & Daniel Stegmueller, 2016. "The Externalities of Inequality: Fear of Crime and Preferences for Redistribution in Western Europe," American Journal of Political Science, John Wiley & Sons, vol. 60(2), pages 472-489, April.
    • Handle: RePEc:wly:amposc:v:60:y:2016:i:2:p:472-489
    DOI: 10.1111/ajps.12212
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    Cited by:

    1. Hauk, Esther & Oviedo, Mónica & Ramos, Xavier, 2022. "Perception of corruption and public support for redistribution in Latin America," European Journal of Political Economy, Elsevier, vol. 74(C).
    2. Sung Min Han & Fangjin Ye, 2022. "Labor union, between group inequality, and individual attitudes toward redistribution," Social Science Quarterly, Southwestern Social Science Association, vol. 103(5), pages 1248-1259, September.
    3. Clément, Matthieu & Piaser, Lucie, 2021. "Do inequalities predict fear of crime? Empirical evidence from Mexico," World Development, Elsevier, vol. 140(C).
    4. Fetscher, Verena, 2020. "Equalizing Incomes in the Future : Why Structural Differences in Social Insurance Matter for Redistribution Preferences," CAGE Online Working Paper Series 463, Competitive Advantage in the Global Economy (CAGE).
    5. Pahontu, Raluca L., 2022. "Divisive jobs: three facets of risk, precarity, and redistribution," LSE Research Online Documents on Economics 111593, London School of Economics and Political Science, LSE Library.
    6. Lopez, Matias & Moraes Silva, Graziella & Teeger, Chana & Marques, Pedro, 2022. "Economic and cultural determinants of elite attitudes toward redistribution," LSE Research Online Documents on Economics 104273, London School of Economics and Political Science, LSE Library.
    7. Morten Nyborg Støstad & Frank Cowell, 2021. "Inequality as an Externality: Consequences for Tax Design," Working Papers halshs-03495989, HAL.
    8. Lobeck, Max & Morten.Stostad@nhh.no, Morten Nyborg, 2023. "The Consequences of Inequality: Beliefs and Redistributive Preferences," Discussion Paper Series in Economics 17/2023, Norwegian School of Economics, Department of Economics.
    9. Traub, Stefan & Schwaninger, Manuel & Paetzel, Fabian & Neuhofer, Sabine, 2023. "Evidence on need-sensitive giving behavior: An experimental approach to the acknowledgment of needs," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 105(C).
    10. Max Lobeck & Morten Nyborg Støstad, 2023. "The Consequences of Inequality: Beliefs and Redistributive Preferences," CESifo Working Paper Series 10710, CESifo.
    11. Israel Marques II, 2022. "Skipping Out On The Check: Institutional Quality, Tax Evasion, And Individual Preferences For Social Policy," HSE Working papers WP BRP 85/PS/2022, National Research University Higher School of Economics.
    12. Licia Bobzien, 2023. "Income Inequality and Political Trust: Do Fairness Perceptions Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 505-528, September.
    13. Michelle Acampora & Conchita D'Ambrosio & Markus M. Grabka, 2020. "Income Distribution and the Fear of Crime: Evidence from Germany," SOEPpapers on Multidisciplinary Panel Data Research 1071, DIW Berlin, The German Socio-Economic Panel (SOEP).
    14. Nicholas Charron & Niklas Harring & Victor Lapuente, 2021. "Trust, regulation, and redistribution why some governments overregulate and under‐redistribute," Regulation & Governance, John Wiley & Sons, vol. 15(1), pages 3-16, January.
    15. 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.
    16. Hwang, Soo Kyeong, 2020. "Korea's preference for redistribution and the policy decisions," KDI Policy Studies 2019-01, Korea Development Institute (KDI).

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