Working Paper: CEPR ID: DP3155
Authors: Alberto F. Alesina; Eliana La Ferrara
Abstract: The poor favour redistribution and the rich oppose it, but that is not all. Social mobility may make some of today?s poor into tomorrow?s rich and since redistributive policies do not change often, individual preferences for redistribution should depend on the extent and the nature of social mobility. We estimate the determinants of preferences for redistribution using individual level data from the US, and we find that individual support for redistribution is negatively affected by social mobility. Furthermore, the impact of mobility on attitudes towards redistribution is affected by individual perceptions of fairness in the mobility process. People who believe that the American society offers equal opportunities to all are more averse to redistribution in the face of increased mobility. On the other hand, those who see the social rat race as a biased process do not see social mobility as an alternative to redistributive policies.
Keywords: poum; redistribution; social mobility
JEL Codes: H10; J62
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Higher social mobility (J62) | Decreased support for redistributive policies (H19) |
| Perceived fairness (equal opportunities) (D63) | Decreased support for redistribution when social mobility increases (J62) |
| Perceived fairness (biased mobility process) (J62) | Maintained support for redistribution despite increased mobility (J62) |
| Higher altruism (D64) | Increased support for redistributive policies (H23) |
| Individual characteristics (gender, race, education) (I24) | Attitudes toward redistribution (H23) |
| Women and racial minorities (particularly blacks) (J15) | Greater support for redistributive policies compared to men and whites (J79) |
| Perceived fairness interacts with social mobility (J62) | Influences responses to changes in mobility (J62) |