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  • In cross-sectional studies, countries with greater income inequality typically exhibit less support for government-led redistribution and greater acceptance of wage inequality (e.g., United States versus Western Europe). If individual nations evolve along this pattern, a vicious cycle could form with reduced social concern amplifying primal increases in inequality due to forces like skill-biased technical change. Exploring movements around these long-term levels, however, this study finds mixed evidence regarding the vicious cycle hypothesis. On one hand, larger compensation differentials are accepted as inequality grows. This growth in differentials is of a smaller magnitude than the actual increase in inequality, but it is nonetheless positive and substantial in size. Weighing against this, growth in inequality is met with greater support for government-led redistribution to the poor. These patterns suggest that short-run inequality shocks can be reinforced in the labor market but do not result in weaker political preferences for redistribution. (xsd:string)
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  • http://www.nber.org/papers/w17701.pdf. (ISSP) (xsd:string)
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  • 2011 (xsd:gyear)
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  • 2011 (xsd:gyear)
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  • 48 (xsd:string)
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  • 17701 (xsd:string)
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  • Income Inequality and Social Preferences for Redistribution and Compensation Differentials (xsd:string)
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  • (17701), 48, National Bureau of Economic Research, 2011 (xsd:string)
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  • International Social Survey Programme (ISSP) (xsd:string)
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  • 2011 (xsd:string)
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