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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.

Suggested Citation

  • Erik SCHOKKAERT & Tom TRUYTS, 2014. "Preferences for redistribution and social structure," Working Papers Department of Economics ces14.01, KU Leuven, Faculty of Economics and Business, Department of Economics.
  • Handle: RePEc:ete:ceswps:ces14.01
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    References listed on IDEAS

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    1. repec:spr:sochwe:v:49:y:2017:i:3:d:10.1007_s00355-016-0996-6 is not listed on IDEAS
    2. 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.
    3. 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.

    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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