Preferences for Redistribution in the Land of Opportunities

43 Pages Posted: 5 May 2001 Last revised: 5 Aug 2022

See all articles by Alberto F. Alesina

Alberto F. Alesina

Harvard University - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Eliana La Ferrara

University of Bocconi - Innocenzo Gasparini Institute for Economic Research (IGIER); Centre for Economic Policy Research (CEPR)

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Date Written: May 2001

Abstract

The poor favor redistribution and the rich oppose it, but that is not all. Social mobility may make some of today's poor into tomorrow's rich and since redistributive policies do not change often, individual preferences for redistribution should depend on the extent and the nature of social mobility. We estimate the determinants of preferences for redistribution using individual level data from the US, and we find that individual support for redistribution is negatively affected by social mobility. Furthermore, the impact of mobility on attitudes towards redistribution is affected by individual perceptions of fairness in the mobility process. People who believe that the American society offers equal opportunities to all are more averse to redistribution in the face of increased mobility. On the other hand, those who see the social rat race as a biased process do not see social mobility as an alternative to redistributive policies.

Suggested Citation

Alesina, Alberto F. and La Ferrara, Eliana, Preferences for Redistribution in the Land of Opportunities (May 2001). NBER Working Paper No. w8267, Available at SSRN: https://ssrn.com/abstract=268876

Alberto F. Alesina (Contact Author)

Harvard University - Department of Economics ( email )

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Eliana La Ferrara

University of Bocconi - Innocenzo Gasparini Institute for Economic Research (IGIER) ( email )

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