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The redistributive consequences of segregation

MPG-Autoren
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Windsteiger,  Lisa
Public Economics, MPI for Tax Law and Public Finance, Max Planck Society;

Externe Ressourcen

https://ssrn.com/abstract=3091493
(Preprint)

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Zitation

Windsteiger, L. (2017). The redistributive consequences of segregation. Working Paper of the Max Planck Institute for Tax Law and Public Finance, 2017-12. doi:10.2139/ssrn.3091493.


Zitierlink: https://hdl.handle.net/21.11116/0000-0001-4415-B
Zusammenfassung
In this paper I present a model in which an increase in inequality can lead to a decrease in voters' demand for redistribution. In my model, people sort into groups according to income and as a result they become biased about the shape of the income distribution. I demonstrate that an increase in inequality can lead to a decrease in perceived inequality in the presence of segregation, and hence to a fall in peoples support for redistribution. I motivate my main assumptions with empirical evidence from a small survey that I conducted via Amazon Mechanical Turk.