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Intergenerational Earnings Mobility and Preferences for Redistribution

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  • Thomas Siedler
  • Bettina Sonnenberg

Abstract

This paper analyzes the extent to which intergenerational upward and downward mobility in earnings are related to individuals' preferences for redistribution. A novel survey question from the German Socio-Economic Panel Study - whether the taxes paid by unskilled workers are too high, adequate or too low - are used to elicit attitudestoward redistribution. Intergenerational mobility with regard to long-term earnings is measured using a rich panel data spanning an observation window of 22 years. The results reveal that intergenerational mobility is significantly related to preferences for redistribution. The empirical results yield strong and robust support for Piketty's (1995) rational-learning theory: individuals who experience upward (downward) intergenerational mobility are less (more) likely to favor redistribution taxation policies.

Suggested Citation

  • Thomas Siedler & Bettina Sonnenberg, 2012. "Intergenerational Earnings Mobility and Preferences for Redistribution," SOEPpapers on Multidisciplinary Panel Data Research 510, DIW Berlin, The German Socio-Economic Panel (SOEP).
    • Handle: RePEc:diw:diwsop:diw_sp510
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    1. Intergenerational Earnings Mobility and Preferences for Redistribution
      by maximorossi in NEP-LTV blog on 2012-12-05 19:51:50

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    2. Clark, Andrew E. & Cotofan, Maria, 2023. "Are the Upwardly-Mobile More Left-Wing?," IZA Discussion Papers 16290, Institute of Labor Economics (IZA).
    3. Campomanes, Ignacio P., 2024. "The political economy of inequality, mobility and redistribution," Journal of Macroeconomics, Elsevier, vol. 79(C).

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    More about this item

    Keywords

    labour; family and networks; subjective indicators;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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