@TechReport{iza:izadps:dp974, author={Schwarze, Johannes and Härpfer, Marco}, title={Are People Inequality Averse, and Do They Prefer Redistribution by the State? A Revised Version}, year={2003}, month={Dec}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={974}, url={https://www.iza.org/publications/dp974}, abstract={We link life-satisfaction data to inequality of the pre- and post-government income distribution at the regional level, to estimate the degree of inequality aversion. Three different inequality measures are used. In addition, we investigate whether a reduction in inequality by the state increases individual well-being. We find only weak evidence that Germans are inequality averse. Inequality reduction by the state does not increase wellbeing. On the contrary, inequality reduction imposes an excess burden on middle-income earners. The paper uses data from the German Socio-economic Panel Study (GSOEP) from 1985 to 1998.}, keywords={life satisfaction;redistribution;inequality aversion;panel data}, }