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Perceptions of own social class and local affluence: Effects on preferences for redistribution

Author

Listed:
  • Javier Olivera

    (Luxembourg Institute of Socio-Economic Research; National Bank of Belgium, and Pontificia Universidad Catolica del Peru)

  • Paola Villa-Paro

    (University of Michigan)

Abstract

We conducted an online survey experiment in Lima to study how perceptions of social class shape support for economic redistribution. Participants were randomly informed about either their actual socio-economic status (SES) or the true share of affluent households in their district. Respondents substantially overestimated their own SES and, to a lesser extent, the prevalence of affluent households. Correcting these misperceptions generally increased support for redistribution, with no effect on a wealth-tax proposal. Effects were especially strong when respondents had misjudged their SES by two or more levels: even those predisposed against redistribution (e.g., right-leaning, individualistic, or sceptical of government) increased their support. Similar patterns also emerged when correcting beliefs about the local distribution of SES.

Suggested Citation

  • Javier Olivera & Paola Villa-Paro, 2026. "Perceptions of own social class and local affluence: Effects on preferences for redistribution," Working Papers 690, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2026-690
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2026-690.pdf
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    References listed on IDEAS

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    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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