Arbeitspapier

Other-Regarding Preferences and Redistributive Politics

Increasing inequality and associated egalitarian sentiments have again put redistribution on the political agenda. Other-regarding preferences may also affect support for redistribution, but knowledge about their distribution in the broader population and how they are associated with political support for redistributive policies is still scarce. In this paper, we take advantage of Swiss direct democracy, where people voted several times on strongly redistributive policies in national plebiscites, to study the link between other-regarding preferences and support for redistribution in a broad sample of the Swiss population. We document that inequality aversion and altruistic concerns play a quantitatively large positive role in the support for redistribution, in particular for more affluent individuals. In addition, previously identified key motives underlying opposition to redistribution – such as the belief that effort is an important driver of individual success – play no role for selfish individuals but are highly relevant for altruistic and egalitarian individuals. Finally, while inequality averse individuals display strong support for policies that primarily aim at reducing the incomes of the rich, altruistic individuals are considerably less supportive of such policies. Thus, knowledge about the fundamental properties and the distribution of individuals' other-regarding preferences also provides a deeper understanding about who is likely to support specific redistributive policies.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 9545

Klassifikation
Wirtschaft
Personal Income, Wealth, and Their Distributions
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Thema
social preferences
altruism
inequality aversion
preference heterogeneity
demand for redistribution

Ereignis
Geistige Schöpfung
(wer)
Fehr, Ernst
Epper, Thomas
Senn, Julien
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2022

Handle
Letzte Aktualisierung
20.09.2024, 08:21 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
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Objekttyp

  • Arbeitspapier

Beteiligte

  • Fehr, Ernst
  • Epper, Thomas
  • Senn, Julien
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2022

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