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Political Ideology and the Intragenerational Prospect of Upward Mobility

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  • Maite D. Laméris
  • Harry Garretsen
  • Richard Jong-A-Pin

Abstract

We examine the effect of prospects of upward mobility (POUM) on the support for redistribution in an intragenerational context. In this context, existing literature so far fails to consider the potential indirect channel via political ideology through which mobility expectations affect redistributive preferences. We address this by including an interaction between income mobility and political ideology, such that the POUM-effect is allowed to vary with political beliefs. We find a robust POUM-effect that is conditional on political preferences. Only for right-wing individuals expected upward income mobility negatively affects support for redistribution. Left-wing individuals on the other hand prefer redistribution, regardless of expected upward income movements.

Suggested Citation

  • Maite D. Laméris & Harry Garretsen & Richard Jong-A-Pin, 2018. "Political Ideology and the Intragenerational Prospect of Upward Mobility," CESifo Working Paper Series 6987, CESifo.
    • Handle: RePEc:ces:ceswps:_6987
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    More about this item

    Keywords

    the POUM-effect; political ideology; income mobility; redistribution; preferences;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • J69 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Other

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