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RICHER (AND HOLIER) THAN THOU? THE EFFECT OF RELATIVE INCOME IMPROVEMENTS ON DEMAND FOR REDISTRIBUTION
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Journal Article
RICHER (AND HOLIER) THAN THOU? THE EFFECT OF RELATIVE INCOME IMPROVEMENTS ON DEMAND FOR REDISTRIBUTION
2017
Overview
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.
Publisher
MIT Press,MIT Press Journals, The
Subject
