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Richer (and Holier) Than Thou? The Effect of Relative Income Improvements on Demand for Redistribution
Stockholm University, Faculty of Social Sciences, Department of Economics. CEPR, and Research Institute of Industrial Economics, Sweden.
Number of Authors: 3
2017 (English)In: Review of Economics and Statistics, ISSN 0034-6535, E-ISSN 1530-9142, Vol. 99, no 2, 201-212 p.Article in journal (Refereed) Published
Abstract [en]

We use a tailor-made survey on a Swedish sample to investigate how individuals' relative income affects their demand for redistribution. We first document that a majority misperceive their position in the income distribution and believe that they are poorer, relative to others, than they actually are. We then inform a subsample about their true relative income and find that individuals who are richer than they initially thought demand less redistribution. This result is driven by individuals with prior right-of-center political preferences who view taxes as distortive and believe that effort, rather than luck, drives individual economic success.

Place, publisher, year, edition, pages
2017. Vol. 99, no 2, 201-212 p.
National Category
Economics and Business Sociology
Identifiers
URN: urn:nbn:se:su:diva-143388DOI: 10.1162/REST_a_00623ISI: 000400676700002OAI: oai:DiVA.org:su-143388DiVA: diva2:1104676
Available from: 2017-06-01 Created: 2017-06-01 Last updated: 2017-06-01Bibliographically approved

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