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Social preferences and redistributive politics

Epper, Thomas; Fehr, Ernst; Senn, Julien (2023). Social preferences and redistributive politics. URPP Equality of Opportunity Discussion Paper Series 47, University of Zurich.

Abstract

Increasing inequality and associated egalitarian sentiments have put redistribution on the political agenda. 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 social preferences and a behaviorally validated measure of support for redistribution in a broad sample of the Swiss population. Using a novel nonparametric Bayesian clustering algorithm, we uncover the existence of three fundamentally distinct preference types in the population: predominantly selfish, inequality averse and altruistic individuals. We show that inequality averse and altruistic individuals display a much stronger support for redistribution, particularly if they are more affluent. In addition, we show that 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 other-regarding individuals. Finally, while inequality averse individuals display strong support for policies that primarily aim to reduce the incomes of the rich, altruistic individuals are considerably less supportive of these policies. Thus, knowledge about the qualitative properties of social preferences and their distribution in the population also provides insights into which preference type supports specific redistributive policies, which has implications for how policy makers may design redistributive packages to maximize political support for them.

Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > URPP Equality of Opportunity Discussion Paper Series
08 Research Priority Programs > Equality of Opportunity
Dewey Decimal Classification:330 Economics
JEL Classification:D31, D72, H23, H24
Uncontrolled Keywords:Social preferences, altruism, inequality aversion, preference heterogeneity, demand for redistribution
Scope:Discipline-based scholarship (basic research)
Language:English
Date:December 2023
Deposited On:09 Feb 2024 13:51
Last Modified:06 Mar 2024 14:41
Series Name:URPP Equality of Opportunity Discussion Paper Series
Number of Pages:78
OA Status:Green
Official URL:https://www.urpp-equality.uzh.ch/dam/jcr:90f4169d-87c1-4393-87b6-187ed89bb8f7/47_REStatpaper.pdf
Related URLs:https://www.urpp-equality.uzh.ch/en/Discussion-Paper-Series.html
Other Identification Number:merlin-id:24407
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