PREFERENCES FOR REDISTRIBUTION IN THE LAND OF OPPORTUNITIES

PREFERENCES FOR REDISTRIBUTION IN THE LAND OF OPPORTUNITIES

May 2001 | Alberto Alesina, Eliana La Ferrara
Alesina and La Ferrara examine how individual preferences for redistribution are influenced by social mobility. They use data from the U.S. to find that individuals with higher chances of upward mobility are less supportive of redistribution. This effect is moderated by perceptions of fairness in the mobility process. Those who believe the U.S. offers equal opportunities are more averse to redistribution when mobility increases, while those who see mobility as biased do not view it as a substitute for redistribution. The study also finds that altruism and risk aversion increase support for redistribution, and that education, gender, and race affect preferences. Women and racial minorities are more supportive of redistribution, while higher education levels are associated with lower support. The paper highlights the importance of considering both individual and societal mobility in understanding preferences for redistribution. It also shows that measures of expected future income and the probability of being above a certain income threshold significantly influence preferences. The results suggest that redistribution policies are more likely to be supported by those who perceive unfairness in the mobility process and by those who value altruism and risk aversion. The study contributes to the understanding of the political economy of redistribution and the factors that influence public support for redistributive policies.Alesina and La Ferrara examine how individual preferences for redistribution are influenced by social mobility. They use data from the U.S. to find that individuals with higher chances of upward mobility are less supportive of redistribution. This effect is moderated by perceptions of fairness in the mobility process. Those who believe the U.S. offers equal opportunities are more averse to redistribution when mobility increases, while those who see mobility as biased do not view it as a substitute for redistribution. The study also finds that altruism and risk aversion increase support for redistribution, and that education, gender, and race affect preferences. Women and racial minorities are more supportive of redistribution, while higher education levels are associated with lower support. The paper highlights the importance of considering both individual and societal mobility in understanding preferences for redistribution. It also shows that measures of expected future income and the probability of being above a certain income threshold significantly influence preferences. The results suggest that redistribution policies are more likely to be supported by those who perceive unfairness in the mobility process and by those who value altruism and risk aversion. The study contributes to the understanding of the political economy of redistribution and the factors that influence public support for redistributive policies.
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