%0 Report %A Schwarze, Johannes %A Härpfer, Marco %T Are People Inequality Averse, and Do They Prefer Redistribution by the State? A Revised Version %D 2003 %8 2003 Dec %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 974 %U https://www.iza.org/publications/dp974 %X 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. %K life satisfaction %K redistribution %K inequality aversion %K panel data