Why are relatively poor people not more supportive of redistribution? Evidence from a randomized survey experiment across 10 countries By Christopher Hoy and Franziska Mager∗ We test a key assumption of conventional theories about prefer- ences for redistribution, which is that relatively poor people should be the most in favor of redistribution. We conduct a randomized survey experiment with over 30,000 participants across 10 coun- tries, half of whom are informed of their position in the national income distribution. Contrary to prevailing wisdom, people who are told they are relatively poorer than they thought are less con- cerned about inequality and are not more supportive of redistri- bution. This finding is driven by people using their own living standard as a \benchmark" for what they consider acceptable for others. JEL: D31, D63, D72, D83, O50, P16, H23 Keywords: Inequality, Social Mobility, Redistribution, Political Economy Social commentators and researchers struggle to explain why, despite growing inequality in many countries around the world, there is often relatively limited support among poorer ∗ Hoy: Australian National University, JG Crawford Building, 132 Lennox Crossing, Acton Australian Capital Territory 0200 Australia,
[email protected]. Mager: Oxfam Great Britain, Oxfam Great Britain Oxfam House John Smith Drive Oxford OX4 2JY United Kingdom,
[email protected]. The authors are very grateful for detailed comments provided on an earlier version of this paper by Michael Norton, Daniel Treisman, Elisabeth Bublitz, Edoardo Teso, Christopher Roth, Russell Toth, Eva Vivalt, Stephen Howes, Emma Samman, Mathias Sinning, Deborah Hardoon, David Hope, Alice Krozer, David McArthur and Ben Goldsmith.