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Unfair Inequality and the Demand for Redistribution

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  • Leo Ahrens

Abstract

Political economy research commonly expects a positive relationship between income inequality and the demand for redistribution, which is increasingly attributed to inequality aversion grounded in norms and values. However, people are not averse to a proportion of inequality that fairly results from differences in individual merit. Therefore, this study argues that the effect of inequality crucially depends on the extent to which income fairness is realized. It is primarily unfair inequality, rather than overall inequality, that affects individual redistribution support. The argument is substantiated with an empirical quantification of unfair inequality that measures whether individuals have unequal returns to their labor-related merits. Multilevel models using repeated cross-sections show that this quantification of unfair inequality can explain both within- and between-country variance in redistribution preferences and that it is a better predictor than overall inequality. The results suggest that public opinion cannot be inferred directly from the overall level of inequality.

Suggested Citation

  • Leo Ahrens, 2020. "Unfair Inequality and the Demand for Redistribution," LIS Working papers 771, LIS Cross-National Data Center in Luxembourg.
  • Handle: RePEc:lis:liswps:771
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    Cited by:

    1. Licia Bobzien, 2023. "Income Inequality and Political Trust: Do Fairness Perceptions Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 505-528, September.
    2. Hajdu, Gábor, 2021. "Perceived income inequality and subjective social status in Europe," GLO Discussion Paper Series 926, Global Labor Organization (GLO).
    3. Nils D. Steiner, 2022. "Economic inequality, unfairness perceptions, and populist attitudes," Working Papers 2203, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.

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