TY - RPRT AU - Preuss, Marcel AU - Reyes, Germán AU - Somerville, Jason AU - Wu, Joy TI - Inequality of Opportunity and Income Redistribution PY - 2024/Jul/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 17155 UR - https://www.iza.org/publications/dp17155 AB - 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. KW - redistribution KW - inequality KW - unequal opportunities KW - luck ER -