Title
Preferences for redistribution and exposure to tax-benefit schemes in Europe
Date Issued
01 June 2020
Access level
open access
Resource Type
journal article
Publisher(s)
Elsevier B.V.
Abstract
This paper provides evidence that attitudes towards redistribution are associated with the extent of generosity of the redistributive context experienced by the individual, as measured by the likelihood of receiving positive benefit transfers net of fiscal contribution. We estimate reduced form tax-benefit equations with the EU Statistics on Income and Living Conditions (EU-SILC), and match the implied parameters to the respondents of the European Social Survey (ESS) on the basis of their characteristics. The period of analysis is 2008–2016. For identification, we exploit exogenous cross-country and time variation in tax rules and market income to disentangle implications of exposure to tax-benefit rules on preferences for redistribution from the effects of changes in income inequality. We find that exposure to positive net benefits increases support for redistribution by 1.4%–3% on baseline models, the effect being robust across a variety of specifications.
Volume
63
Language
English
OCDE Knowledge area
Ciencia política
Scopus EID
2-s2.0-85082744284
Source
European Journal of Political Economy
ISSN of the container
01762680
Source funding
Agence Nationale de la Recherche
Sponsor(s)
This paper benefitted from comments by Koen Decancq, Philippe Van Kerm and participants to the IT14 Winter School “Health Opportunity and Redistribution” (Canazei, Italy, 2019) and the “International workshop on what drives inequality” (Luxembourg, 2018). This work was supported by the French Agence Nationale de la Recherche [Ordineq grant ANR-16-CE41-0005-01 ] and the Luxembourg Fonds National de la Recherche [IMCHILD grant INTER/NORFACE/16/11333934 and PREFERME CORE grant C17/SC/11715898 ]. The usual disclaimer applies. Replication code and data, alongside additional results, are made available as a web appendix on the authors webpages.
Sources of information: Directorio de Producción Científica Scopus