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Political Polarization, Wage Inequality and Preferences for Redistribution

Author

Listed:
  • Christopher Hoy

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Lionel Page

    (University of Queensland)

  • Catherine Eckel

    (Texas A&M University)

  • Philip Grossman

    (Monash University)

Abstract

Using nationally representative, randomized survey experiments, we investigate how beliefs about wage inequality impact preferences for redistribution. With more than 9,000 respondents in six high-income countries and a novel distribution builder tool, we elicit detailed beliefs about wage inequality and examine the impact of accurate information on support for redistribution. We find most respondents underestimate wage inequality and that information treatments have minimal effects, except for re spondents on the far-right, who exhibit large increases in support for higher income taxes and social spending. Our findings suggest that far-right voters’ attitudes toward redistribution may be more malleable than is often assumed.

Suggested Citation

  • Christopher Hoy & Lionel Page & Catherine Eckel & Philip Grossman, 2025. "Political Polarization, Wage Inequality and Preferences for Redistribution," Melbourne Institute Working Paper Series wp2025n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2025n08
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    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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