@TechReport{iza:izadps:dp17155, author={Preuss, Marcel and Reyes, Germán and Somerville, Jason and Wu, Joy}, title={Inequality of Opportunity and Income Redistribution}, year={2024}, month={Jul}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={17155}, url={https://www.iza.org/publications/dp17155}, abstract={Support for redistribution depends on whether inequality stems from differences in performance or luck, but different sources of luck may impact redistribution differentially. We elicit redistribution decisions from a U.S.-representative sample who observe worker earnings and whether luck influenced their earnings directly ("lucky outcomes") or indirectly by providing a relative advantage ("lucky opportunities"). Participants redistribute less under lucky opportunities. When assessing the impact of unequal opportunities, individuals rely on a heuristic that leads them to underestimate how even a small relative advantage can substantially influence worker earnings. Our findings highlight the role of inferential challenges in shaping attitudes towards inequality. }, keywords={redistribution;inequality;unequal opportunities;luck}, }