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Review of Economics and Statistics

Richer (and Holier) Than Thou? The Effect of Relative Income Improvements on Demand for Redistribution

Vetenskaplig artikel på engelska
Referens
Karadja, Mounir, Johanna Möllerström och David Seim (2017). ”Richer (and Holier) Than Thou? The Effect of Relative Income Improvements on Demand for Redistribution”. Review of Economics and Statistics 99(2), 201–212. doi.org/10.1162/REST_a_00623

Författare
Mounir Karadja, Johanna Möllerström, David Seim

We use a tailor-made survey on a Swedish sample to investigate how individuals’ relative income affects their demand for redistribution. We first document that a majority misperceive their position in the income distribution and believe that they are poorer, relative to others, than they actually are. We then inform a subsample about their true relative income and find that individuals who are richer than they initially thought demand less redistribution. This result is driven by individuals with prior right-ofcenter political preferences who view taxes as distortive and believe that effort, rather than luck, drives individual economic success.