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Preferences for redistribution and social structure

  • SCHOKKAERT, Erik

    ()

    (Department of Economics, KU Leuven; Université catholique de Louvain, CORE, Belgium)

  • TRUYTS, Tom

    ()

    (CEREC, Saint Louis University; Université catholique de Louvain, CORE, Belgium)

We model inter-individual differences in preferences for redistribution as a function of (a) self-interest; (b) stable ideological traits; (c) subjective perceptions of the relative importance of the main determinants of income differences (luck, effort, talent). Individuals base the latter on information obtained from their reference group. We analyse the consequences for redistributive preferences of homophilous reference group formation based on talent. We argue that our theoretical results make it possible to understand and integrate some of the main insights from the empirical literature. We illustrate with GSS data from 1987 how our model may help in structuring empirical work.

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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2014001.

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Date of creation: 12 Feb 2014
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Handle: RePEc:cor:louvco:2014001
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  3. Andreas Georgiadis & Alan Manning, 2007. "Spend it like Beckham? Inequality and redistribution in the UK, 1983-2004," LSE Research Online Documents on Economics 19697, London School of Economics and Political Science, LSE Library.
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  7. Roland Bénabou & Jean Tirole, 2006. "Belief in a Just World and Redistributive Politics," The Quarterly Journal of Economics, MIT Press, vol. 121(2), pages 699-746, May.
  8. Chih Ming Tan & Louise C. Keely, 2004. "Understanding preferences for income redistribution," Econometric Society 2004 North American Summer Meetings 611, Econometric Society.
  9. Beatrix Eugster & Rafael Lalive & Andreas Steinhauer & Josef Zweimüller, 2011. "The Demand for Social Insurance: Does Culture Matter?," Economic Journal, Royal Economic Society, vol. 121(556), pages F413-F448, November.
  10. Cervellati, Matteo & Esteban, Joan & Kranich, Laurence, 2010. "Work values, endogenous sentiments redistribution," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 612-627, October.
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  13. Cruces, Guillermo & Perez Truglia, Ricardo & Tetaz, Martin, 2011. "Biased Perceptions of Income Distribution and Preferences for Redistribution: Evidence from a Survey Experiment," IZA Discussion Papers 5699, Institute for the Study of Labor (IZA).
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  15. Luttmer, Erzo F. P. & Singhal, Monica, 2008. "Culture, Context, and the Taste for Redistribution," Working Paper Series rwp08-038, Harvard University, John F. Kennedy School of Government.
  16. Laurence Kranich & Matteo Cervellati & Joan Esteban, 2010. "Work Values, Endogenous Sentiments and Redistribution," Discussion Papers 10-05, University at Albany, SUNY, Department of Economics.
  17. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October.
  18. Yamamura, Eiji, 2012. "Social capital, household income, and preferences for income redistribution," European Journal of Political Economy, Elsevier, vol. 28(4), pages 498-511.
  19. 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.
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  23. Maria Grazia Pittau & Riccardo Massari & Roberto Zelli, 2013. "Hierarchical Modelling of Disparities in Preferences for Redistribution," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(4), pages 556-584, 08.
  24. Fong, Christina, 2001. "Social preferences, self-interest, and the demand for redistribution," Journal of Public Economics, Elsevier, vol. 82(2), pages 225-246, November.
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