IZA DP No. 4056: Preferences for Redistribution
published in: Jess Benhabib, Alberto Bisin, Matthew O. Jackson (eds.): Handbook of Social Economics, Vol. 1A, The Netherlands: North-Holland 2010, pp. 93-131
This paper discusses what determines the preferences of individuals for redistribution. We review the theoretical literature and provide a framework to incorporate various effects previously studied separately in the literature. We then examine empirical evidence for the US, using the General Social Survey, and for a large set of countries, using the World Values Survey. The paper reviews previously found results and provides several new ones. We emphasize, in particular, the role of historical experiences, cultural factors and personal history as determinants of preferences for equality or tolerance for inequality.