Risk preferences and the demand for redistribution
(English)Manuscript (preprint) (Other academic)
If individuals view redistributive policy as an insurance against future negative economic shocks, then the demand for redistribution increases in individual risk aversion. We provide a direct test of the correlation between the demand for redistribution and individual risk aversion in a customized survey and find that they are strongly and robustly positively correlated: more risk averse people demand more redistribution. We also replicate the results from previous literature and, on the one hand, find that the demand for redistribution is positively correlated with altruism, the belief that individual economic success is the result of luck rather than effort, a working-class parental background and downward mobility experience and expectations. On the other hand, preferences for redistribution are negatively correlated with income, a conservative political ideology and upward mobility experience and expectations. The magnitude of the correlation between risk aversion and the demand for redistribution is comparable to the magnitude of these previously identified, and here replicated, correlates.
Research subject Economics
IdentifiersURN: urn:nbn:se:su:diva-122025OAI: oai:DiVA.org:su-122025DiVA: diva2:862199