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

Author

Listed:
  • Javier Olivera

    (Departamento de Economía de la Pontificia Universidad Católica del Perú)

  • Paola Villa-Paro

    (Universidad de 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. Correctingthese 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. Palabras claves: Preferencias for redistribución, percepciones de desigualdad, creencias, impuesto a la riqueza, Peru. JEL Classification-JE: H24, D31, D63, E62, H53

Suggested Citation

  • Javier Olivera & Paola Villa-Paro, 2025. "Perceptions of own social class and local affluence: Effects on preferences for redistribution," Documentos de Trabajo / Working Papers 2025-551, Departamento de Economía - Pontificia Universidad Católica del Perú.
    • Handle: RePEc:pcp:pucwps:wp00551
    DOI: 10.18800/2079-8474.0551
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    Keywords

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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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