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Inequality Aversion and Voting on Redistribution

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  • Wolfgang Höchtl
  • Rupert Sausgruber
  • Jean-Robert Tyran

Abstract

Mounting evidence shows that there is heterogeneity in aversion to inequality, i.e. that some people have a concern for a fair distribution. Does such a concern matter for majority voting on redistribution? Fairness preferences are relevant for redistribution outcomes only if fair voters are pivotal. Pivotality, in turn, depends on the structure of income classes. We experimentally study voting on redistribution between two income classes and show that the effects of inequality aversion are asymmetric. Inequality aversion is more likely to matter if the "rich" are in majority. With a "poor" majority, we find that redistribution outcomes look as if all voters were exclusively motivated by their pocketbook.

Suggested Citation

  • Wolfgang Höchtl & Rupert Sausgruber & Jean-Robert Tyran, 2011. "Inequality Aversion and Voting on Redistribution," Working Papers 2011-13, Faculty of Economics and Statistics, Universität Innsbruck.
  • Handle: RePEc:inn:wpaper:2011-13
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    More about this item

    Keywords

    redistribution; self interest; inequality aversion; median voter; experiment;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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