Why Are Relatively Poor People Not More Supportive of Redistribution? Evidence from a Randomized Survey Experiment across Ten Countries

2021 ◽  
Vol 13 (4) ◽  
pp. 299-328
Author(s):  
Christopher Hoy ◽  
Franziska Mager

We test a key assumption underlying seminal theories about preferences 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 countries, 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 concerned about inequality and are not more supportive of redistribution. This finding is consistent with people using their own living standard as a “benchmark” for what they consider acceptable for others. (JEL D12, D31, H23, I31, I32)

2020 ◽  
Author(s):  
Elisabeth Bublitz

Abstract Can imperfect information, as revealed in individual misperceptions about income distributions, explain the demand for redistribution? I conduct a representative survey experiment in Brazil, France, Germany, Russia, Spain and the USA, providing a personalized information treatment on income distribution to a randomly chosen subsample. Most respondents misperceive their own position in the income distribution. These biases differ notably by country and the true income position. Correcting misperceptions slightly shifts the demand towards less redistribution in Germany and Russia. This shift appears to be driven by respondents with a negative position bias. The lack of significant treatment effects in other countries may result from different individual reactions that cancel each other out. Thus, the existence of systematic misperceptions underscores their importance for understanding preferences for redistribution.


KINERJA ◽  
2016 ◽  
Vol 20 (1) ◽  
pp. 53
Author(s):  
Lestari Agusalim

AbstrakPenelitian ini bertujuan untuk mengkaji pengaruh desentralisasi dalam mendistribusikan pendapatan nasional untuk mengurangi ketimpangan pendapatan di Indonesia. Data yang digunakan adalah data sekunder, yaitu PDB sebagai representasi pendapatan nasional dan data indeks gini sebagai representasi tingkat ketimpangan pendapatan dengan rentang waktu 1978-2015. Metode analisis menggunakan regresi linear dengan pendekatan OLS dimana Indeks gini digunakan sebagai variabel dependen, dan PDB sebagai variabel independen. Selain itu, terdapat variabel independen lainnya, yaitu variabel dummy desentralisasi yang berguna untuk mengetahui pengaruh desentralisasi terhadap ketimpangan pendapatan. Hasil analisis menunjukkan bahwa dari aspek ekonomi, desentralisasi belum mampu mendistribusikan pertumbuhan ekonomi untuk memperkecil ketimpangan pendapatan masyarakat.Kata Kunci: Pertumbuhan Ekonomi, Ketimpangan Pendapatan, DesentralisasiAbstractThis research aims to analyze the effect of decentralization on national income distribution and the reduce of income Inequality in Indonesia. This research used secondary data with gross domestic product (GDP) representing national income and gini index data representing income inequality from 1978 to 2015. An OLS Linear Regression approach was employed where the gini index was the dependent variable, and the independent variables were GDP and the Dummy for decentralization implementation. The result revealed that decentralization had not been able to distribute economic growth to minimize income Inequality.Keywords: Economic Growth, Income Inequality, Decentralization


JEJAK ◽  
2020 ◽  
Vol 13 (1) ◽  
pp. 69-83
Author(s):  
Muhammad Amir Arham ◽  
Ahmad Fadhli ◽  
Sri Indriyani Dai

Agriculture is the primary sector in many provinces in Indonesia. In fact, most of the rural communities work in the agricultural sector. Nevertheless, the poverty level in rural areas remains high. Therefore, this study was aimed at investigating the performance of the agricultural sector in reducing the rural poverty level in Indonesia, and to investigate factors that contribute as a determinant in reducing rural poverty level in Indonesia. This study was significant, considering that the result was to contribute to government policy evaluation in the agricultural sector, especially in reducing poverty in rural areas. This study used quantitative analysis through multiple regressions with data panel from 2014 to 2017 from 33 provinces in Indonesia. This study revealed that the increase of agricultural sector share and the widening of the income distribution had caused an increase in poor people in a rural area. This finding also revealed that the income distribution gap was a determinant to the severity of rural poverty. The growth in the agricultural sector to contribute toward the economy could reduce rural poverty level in Indonesia. Meanwhile, agricultural financing, economic growth, inflation, and the farmer exchange rate had not significantly contributed to reducing the poverty level.


INFERENSI ◽  
2020 ◽  
Vol 13 (2) ◽  
pp. 219-252
Author(s):  
Abdul Hamid ◽  
Riris Aishah Prasetyowati ◽  
Rio Trisasmita

This paper examines the Concept of Income Distribution in Islam through the Zakat Fund which is managed as a source of funds in improving better conditions in the socio-economic poor population in the fields of education, housing, and income to support the economic growth of West Java Province. This study uses a sample test through a quantitative method and real data to observe the correlation and potential contribution of zakat from Muslim residents who work in West Java region to the distribution of income of the poor population. For each observation variable, before-and-after regression and comparison tests are associated with the potential of zakat as a concept of the distribution of Sharia or Islamic income. Hypothesis testing of two means is used to obtain different observational results from the results of this study. There is significant diversity in the socio-economic conditions of the poor before and after the implementation of the concept of distribution of Sharia or Islamic income in West Java Province. Likewise, the hypothesis testing shows that Sharia or Islamic income distribution has a significant influence on socio-economic conditions in the fields of education, proper housing, and income of the poor population on the growth of the regional economy of West Java (GRDP). With the diversity of relationships and influences among socioeconomic variables, e.g. the income of poor people after the calculation of Zakat and improper housing with the distribution of income with the concept of Islam have opposite relationships. However, the unidirectional relationship occurs in the education on theeconomic growth of the West Java regional domestic. 


2021 ◽  
Vol 10 (4, special issue) ◽  
pp. 326-335
Author(s):  
Nikolaos Zisoudis ◽  
Eleni Zafeiriou ◽  
Alexandros Garefalakis ◽  
Konstantinos Spinthiropoulos ◽  
Stavros Garefalakis

The economic crisis in the EU had severe impacts not only on the performance of the domestic economy but also on the living standard for the citizens. The extended spread of this crisis resulted in limitation in the disposable income and significant negative changes have taken place with negative consequences for the corporate economic performance and competitiveness (de Jorge Moreno, Castillo, & de Zuani Masere, 2010). Within the dominance of certain conditions of economic crisis, there are a few firms that act as lighting exceptions. The present work makes an effort, to unveil the role of selected supermarket retail chain stores in the performance of certain macroeconomic parameters and therefore to illustrate the mechanism through which the restoration of the economy in Greece becomes feasible. More specifically, based on data derived by Eurostat and Greek National Statistics with the assistance of the findings of present analysis that validate a significant contribution of the firms studied to macroeconomic parameters such as national income or employment it may provide policymakers with knowledge tools to promote corporate efforts of this type and in sequence to lead the macroeconomic system in a trajectory of economic growth.


Author(s):  
Jekaterina Navickė ◽  
Romas Lazutka

In this paper we aim to cover the gap in analysis of functional distribution of National income at the macroeconomic level and personal income distribution at the microlevel. We compare the information provided in the National Accounts and in the EU Survey on Income and Living Conditions (EU-SILC) for the three Baltic states and in a wider EU context to establish the links between the economic prosperity at the macro level and income distribution at individual level. Comparative design helps identify differences in income structure and inequality within similar socio-economic conditions. As demonstrated, similar levels of per capita disposable incomes in the National Accounts in the Baltics hide higher levels of income inequality than conventionally shown in the EU-SILC. This is to a large degree due to high level of under-reporting of property income and is most acute for Lithuania.


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