How Elastic Are Preferences for Redistribution? Evidence from Randomized Survey Experiments

How Elastic Are Preferences for Redistribution? Evidence from Randomized Survey Experiments

April 2015 | Kuziemko, Ilyana, Michael I. Norton, Emmanuel Saez, and Stefanie Stantcheva
The paper examines how preferences for redistribution are influenced by information through a series of randomized survey experiments conducted on Amazon's Mechanical Turk (mTurk) platform. The study focuses on US income inequality, the relationship between top income tax rates and economic growth, and the estate tax. Key findings include: 1. **Elasticity of Inequality Concerns**: The treatment significantly increases respondents' concern about inequality, with a 35% increase in the share agreeing that inequality is a "very serious problem." This effect is substantial, accounting for about 36% of the liberal-conservative gap on this issue. 2. **Policy Preferences**: While the treatment has some effects on policy preferences such as top income tax rates, minimum wage, and food stamps, these effects are small and often insignificant. The exception is the estate tax, where providing information on the small share of estates subject to the tax more than doubles support for increasing it. 3. **Trust in Government**: The treatment significantly decreases trust in government, which may explain the muted response to other policy outcomes. Respondents are more likely to trust government in the control group, and the treatment reduces support for poverty-alleviation policies, except for the minimum wage. 4. **Mechanisms Behind Effects**: The study explores potential mechanisms behind the large effects on the estate tax and the muted responses for other policies. It finds that respondents are misinformed about the share of decedents subject to the estate tax, which accounts for the large effects. Additionally, the treatment increases support for the minimum wage and other poverty-alleviation programs when respondents are explicitly reminded of the resources provided to such families through government programs. 5. **Conclusion**: The findings suggest that while information can significantly alter views on inequality, it has limited impact on policy preferences. The study highlights the role of trust in government in shaping public opinion and the importance of connecting concerns about inequality with specific public policies.The paper examines how preferences for redistribution are influenced by information through a series of randomized survey experiments conducted on Amazon's Mechanical Turk (mTurk) platform. The study focuses on US income inequality, the relationship between top income tax rates and economic growth, and the estate tax. Key findings include: 1. **Elasticity of Inequality Concerns**: The treatment significantly increases respondents' concern about inequality, with a 35% increase in the share agreeing that inequality is a "very serious problem." This effect is substantial, accounting for about 36% of the liberal-conservative gap on this issue. 2. **Policy Preferences**: While the treatment has some effects on policy preferences such as top income tax rates, minimum wage, and food stamps, these effects are small and often insignificant. The exception is the estate tax, where providing information on the small share of estates subject to the tax more than doubles support for increasing it. 3. **Trust in Government**: The treatment significantly decreases trust in government, which may explain the muted response to other policy outcomes. Respondents are more likely to trust government in the control group, and the treatment reduces support for poverty-alleviation policies, except for the minimum wage. 4. **Mechanisms Behind Effects**: The study explores potential mechanisms behind the large effects on the estate tax and the muted responses for other policies. It finds that respondents are misinformed about the share of decedents subject to the estate tax, which accounts for the large effects. Additionally, the treatment increases support for the minimum wage and other poverty-alleviation programs when respondents are explicitly reminded of the resources provided to such families through government programs. 5. **Conclusion**: The findings suggest that while information can significantly alter views on inequality, it has limited impact on policy preferences. The study highlights the role of trust in government in shaping public opinion and the importance of connecting concerns about inequality with specific public policies.
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