Fairness and the Unselfish Demand for Redistribution by Taxpayers and Welfare Recipients.

We theoretically illustrate how the aversion to unfairness triggers an unselfish though rational demand for redistribution. This leads the well‐off to demand positive tax rates and the "poor" to reject extreme progressivity. We prove that the "rich" and the "poor" adjust their demand for redistribut...

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Publicado en:Southern Economic Journal Vol. 86; no. 3; pp. 971 - 989
Autores principales: Sabatini, Fabio, Ventura, Marco, Yamamura, Eiji, Zamparelli, Luca
Formato: Artículo
Publicado: Wiley-Blackwell Jan2020
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Fairness and the Unselfish Demand for Redistribution by Taxpayers and Welfare Recipients.
      aug:
        au:
          Sabatini, Fabio
          Ventura, Marco
          Yamamura, Eiji
          Zamparelli, Luca
        affil:
          Department of Economics and Law, Sapienza University of Rome, Via del Castro Laurenziano 9, 00161 Rome Italy and IZA, Bonn, Germany
          Department of Economics and Law, Sapienza University of Rome, Via del Castro Laurenziano 9, 00161, Rome Italy
          Department of Economics, Seinan Gakuin University, 6 Chome‐2‐92 Nishijin, Sawara Ward, Fukuoka 814‐0002, Japan
          Department of Economics and Law, Sapienza University of Rome, Via del Castro Laurenziano 9 00161, Rome Italy
      su:
        Italy
        Fairness
        Tax rates
        Aversion
      sug:
        subj:
          Fairness
          Italy
          Tax rates
          Aversion
      ab: We theoretically illustrate how the aversion to unfairness triggers an unselfish though rational demand for redistribution. This leads the well‐off to demand positive tax rates and the "poor" to reject extreme progressivity. We prove that the "rich" and the "poor" adjust their demand for redistribution in opposite ways when their sensitivity to fairness increases: while agents with above average expected income raise their demand for redistribution, agents with below average income lower it. We then provide empirical evidence of these behaviors using a nationally representative survey from Italy. The estimates confirm that a stronger aversion to unfair distributive outcomes is associated with a higher support for redistribution by individuals with high income and to a lower demand for redistribution by those with low income.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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