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Why do people support redistribution more in some countries than in others? Two main institutional accounts can be said to compete: Is it universal benefits to all that makes people support redistribution (Korpi & Palme, 1998)? Or is it universal tax contributions by all (Rothstein, 1998)? Empirical support is not established for either account, particularly when tested against individual-level data. The lack of empirical support can be attributed to three reasons. First, previous research has focused on only one side of the coin – either taxes or benefits, although taxes and benefits can condition each other’s effects. Second, the pivotal role of the middle class – underlying causal mechanism of the two theories – has not been adequately examined. Third, previous measures of universalism (the overall dispersion of benefits or taxes) neither take the levels of benefits/taxes (whether they are 10 or 30 percent of income) nor how the levels vary across income groups (low, middle, and high income) into account. In a critical synthesis of two main institutional theories, I aim to assess to what extent the tax and benefit structure of the welfare state shapes individuals’ preference for redistribution. I argue that higher benefits to the middle class and higher taxes on low incomes are conducive to a broad support for redistribution. For 15 industrialized democracies, I use multi-level models for statistical estimation, drawing on data from Luxembourg Income Study and International Social Survey Programme.
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http://www.lisdatacenter.org/wp-content/uploads/s21.pdf. (ISSP)
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How Does the Tax and Benefit Structure of the Welfare State Shape Popular Support for Redistribution?
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International Social Survey Programme (ISSP)
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2017
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