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The evolution of affluent support for redistribution in Germany in the context of rising inequalities

Author

Listed:
  • Bilal El Rafhi

    (LED - Laboratoire d'Economie Dionysien - UP8 - Université Paris 8)

  • Thibault Darcillon

    (LED - Laboratoire d'Economie Dionysien - UP8 - Université Paris 8)

Abstract

This paper explores the changing attitudes of the most affluent individuals towards state intervention in redistribution in Germany in the context of growing inequality. Contrary to the predictions from traditional political economy models, a growing body of research suggests that the most affluent individuals could support more redistributive policies in reaction to higher income inequality due to altruism, fear of externalities (such as rising crime rates), and potential economic and social costs associated with downward mobility. Using survey data from the European Social Survey (ESS) from 2002 to 2020, our results provide robust evidence of our main prediction: we find a significant relative increase in support for redistribution among the top 30% of earners (compared to the bottom 70% of earners). Our heterogeneous analysis then reveals that the substantial increase in support for redistribution among the affluent has increased among supporters of the political left. This trend seems, however, to be comparatively less pronounced in East Germany.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Bilal El Rafhi & Thibault Darcillon, 2024. "The evolution of affluent support for redistribution in Germany in the context of rising inequalities," Post-Print hal-04847962, HAL.
    • Handle: RePEc:hal:journl:hal-04847962
    DOI: 10.1016/j.ejpoleco.2024.102614
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    Cited by:

    1. Elisa Stumpf & Silke Uebelmesser, 2025. "Preferences for Wealth Redistribution: The Role of Social Background and Merit," Jena Economics Research Papers 2025-008, Friedrich-Schiller-University Jena.

    More about this item

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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