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Preferences for redistribution and social structure

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  • Erik Schokkaert
  • Tom Truyts

Abstract

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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Suggested Citation

  • Erik Schokkaert & Tom Truyts, 2017. "Preferences for redistribution and social structure," LIDAM Reprints CORE 2960, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvrp:2960
    Note: In : Social Choice and Welfare, 49, 545-576, 2017
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    Cited by:

    1. 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.
    2. 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).
    3. Begoña Cabeza & Koen Decancq, 2018. "Effort or Luck? Believing in the role of effort during the Spanish economic recession," Working Papers 1818, Herman Deleeck Centre for Social Policy, University of Antwerp.
    4. 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.
    5. Roberto Antonietti & Francesco Farina & Fulvio Fontini, 2016. "A Rational Explanation for the Redistribution Paradox. Theory and Empirical Evidence," Scottish Journal of Political Economy, Scottish Economic Society, vol. 63(5), pages 539-555, November.

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    More about this item

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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