Does wealth reduce support for redistribution?
New publication in the Journal of Public Economics by Vincent Somville and his co-authors titled "Does wealth reduce support for redistribution? Evidence from an Ethiopian housing lottery".
Authors:
Vincent Somville, Asbjørn G. Andersen, Simon Franklin, Tigabu Getahun, Andreas Kotsadam and Espen Villanger.
Abstract:
Exploiting the variation in wealth created by an Ethiopian housing lottery, we show that general attitudes towards redistribution and inequality aversion are not affected by a large positive wealth shock. New homeowners are, however, less supportive of taxing homeowners, highlighting a potential conflict between self-interest and preferences for redistribution. We also find evidence of endogenous beliefs: relative to losers, the wealthier winners are less likely to emphasize the role of luck in explaining economic success. We interpret this finding in terms of a self-serving bias.