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Session Overview
Session
D03: Perceptions and Preferences for Equity
Time:
Thursday, 22/Aug/2024:
1:30pm - 3:30pm

Location: Room RB 104 (Rajská building)

capacity 24

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Presentations

Tax the Rich and Lazy: Attitudes towards Taxing Inheritance

Chloé de Meulenaer

LSE, United Kingdom

I use new survey data from France to explore attitudes towards the inheritance tax and demand for redistribution. Although the inheritance tax is very unpopular, respondents show significant support for redistributive taxation, namely for taxing capital income, and the bequests of parents who have themselves inherited. This suggests that respondents do demand redistribution, but that they do not see the inheritance tax as an effective redistributive tool. I analyze how these preferences shift when exposed to two arguments: one highlighting wealth inequality, the other defending parents' right to bequeath their patiently-earned savings. The inequality argument increases support for the inheritance and capital income taxes. Surprisingly, the second argument also increases support for the capital income tax, and mildly increases support for the inheritance tax. This last finding may be due to backfiring, or to that argument increasing support for taxing "low effort" income and wealth.

de Meulenaer-Tax the Rich and Lazy-652.pdf


Skill-Biased Inequality, Market Luck, and Redistributive Preferences

Jeffrey Yusof, Simona Sartor

University of Zurich, Switzerland

In recent decades, macroeconomic developments such as globalization, skill-biased technological change, and automation have increased the wedge in the valuation of different skills in the labor market, with certain skills becoming less valuable while other skills receive even higher rewards. Do people perceive such skill-biased inequalities as fair? We provide causal experimental evidence of people's fairness views when income inequality between workers with different skills is driven by exogenous market forces. Our paper suggests that the conventional dichotomy of effort versus luck falls short of explaining redistributive preferences in contexts where markets generate and perpetuate inequality.

Yusof-Skill-Biased Inequality, Market Luck, and Redistributive Preferences-147.pdf


Lifting The Veil Of Ignorance - An Experimental Investigation Of Preferences For Redistribution Of Wealth

Elisa Stumpf1, Silke Uebelmesser1,2

1Friedrich Schiller University Jena, Germany; 2CESifo

We conduct a large-scale online survey in Germany to study beliefs about wealth inequality and preferences for wealth redistribution. First, we examine participants' knowledge of the German wealth distribution and their position in it. Second, we investigate the impact of an information experiment on redistribution preferences. One group receives information on the wealth distribution's shape, while another learns their position in it. We find no significant average treatment effects in the full sample. However, those overestimating their position reduce their inequality aversion after learning their position, while those underestimating it are more likely to believe anyone can become successful through hard work. We employ a data-driven approach to investigate heterogeneity in treatment effects and present evidence that younger participants decrease their support for redistribution after learning about the shape of the wealth distribution. In contrast, older participants decrease their support after learning their position in the distribution.

Stumpf-Lifting The Veil Of Ignorance-490.pdf


Determinants of the Spousal Age Gap in India: Analysis of Indian Microdata

Praveen Praveen1, Suddhasil Siddhanta2

1Gokhale Institute of Politics and Economics, India; 2Gokhale Institute of Politics and Economics, India

Employing data from the 61st and 68th National Sample Survey data rounds, our analysis uncovers socio-economic determinants of the spousal age gap (SAG) in India, demonstrating an "inverted U-shape" pattern. We identify that employment in similar white-collar professions is associated with smaller SAGs. In rural settings, transitional household dynamics contribute to reduced age disparities, underscoring the influence of family structure. Furthermore, the limited availability of white-collar jobs regionally exacerbates SAGs, indicating occupational stigma's impact. The expansion of urban white-collar employment in 2004-05 initially narrowed SAGs, though this effect diminished by 2011-12. Additional factors such as household income and demographic pressures are also significant. Our findings suggest that the abandonment of arranged marriages, combined with socio-economic progress, educational gender equity, partnership economics, and shared normative standards, could serve as catalysts for reducing or inverting SAGs, offering new perspectives on age hypergamy in India.

Praveen-Determinants of the Spousal Age Gap in India-263.pdf


 
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