Working Paper: NBER ID: w31974
Authors: Michel Marechal; Alain Cohn; Jeffrey Yusof; Raymond Fisman
Abstract: Using cross-sectional data from 93 countries, we investigate the relationship between the desired level of redistribution among citizens from different socioeconomic backgrounds and the actual extent of government redistribution. Our focus on redistribution arises from the inherent class conflicts it engenders in policy choices, allowing us to examine whose preferences are reflected in policy formulation. Contrary to prevailing assumptions regarding political influence, we find that the preferences of the lower socioeconomic group, rather than those of the median or upper strata, are most predictive of realized redistribution. This finding contradicts the expectations of both leading experts and regular citizens.
Keywords: redistribution; socioeconomic status; government policy; preferences; cross-country analysis
JEL Codes: D72; D78; H23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| lower SES preferences (P36) | realized redistribution (H23) |
| median SES preferences (D11) | realized redistribution (H23) |
| upper SES preferences (P36) | realized redistribution (H23) |
| preferences of highest SES group (P36) | realized redistribution (H23) |