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Perceptions and Preferences for Redistribution

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  • Stantcheva, Stefanie

Abstract

The relationship between the degree of inequality and the demand for redistribution has been a central question in political science and political economy. The famous median-voter model predicts that higher inequality, reflected in a growing gap between the income of the average and the median voter, should lead to increased demand for redistribution, as policymakers cater to the median voter’s preferences (Meltzer and Richard, 1981). Yet, using data from OECD countries, Kenworthy and McCall (2008) show that, despite increases in inequality in those countries, there was no corresponding increase in demand for redistribution. Part of the explanation of this puzzle lies in the realization that it is not only (or even mainly) reality, but perceptions that shape support for policy. This article will explore recent evidence using large-scale social economics surveys and experiments that sheds lights on beliefs about inequality, social mobility, diversity and immigration, social position, and understanding of how policies work.

Suggested Citation

  • Stantcheva, Stefanie, 2021. "Perceptions and Preferences for Redistribution," CEPR Discussion Papers 16638, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:16638
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    Cited by:

    1. Bublitz, Elisabeth & Jäger, Julian & Wang, Hequn & Beblo, Miriam & Lohmann, Henning, 2022. "Where do I stand in the EU? Income comparisons and perceptions," WiSo-HH Working Paper Series 66, University of Hamburg, Faculty of Business, Economics and Social Sciences, WISO Research Laboratory.
    2. Campos-Vazquez, Raymundo M. & Krozer, Alice & Ramírez-Álvarez, Aurora A., 2023. "Preferred tax rates depend on the rates paid by the rich," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 104(C).
    3. Carlos Esteban Posada, 2022. "Redistribution Policy and Social Welfare: A View from Macroeconomics," Documentos de Trabajo de Valor Público 20197, Universidad EAFIT.

    More about this item

    Keywords

    Redistribution; Fairness; Immigrants; Mobility; Survey; Experiments; beliefs;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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