Preferences towards redistribution and equality: How important is social capital?

Abstract

Do people prefer a society with an extensive social welfare system with high taxes, or low taxes but lax redistributive policies? Although economists have for a long time investigated the trade-off mechanism between equity and efficiency, surprisingly little information is available about citizens' preferences over the distribution of income in a society. The aim of this paper is to address this shortcoming by identifying, in an empirical study using the World Values Survey, what shapes individuals' preferences for income equality in Spain. We present evidence that social capital is a key determinant to understanding preferences towards redistribution and equality.

Citation

García-Valiñas, M.A., Fernández Llera, R. and Torgler, B. (2007), "Preferences towards redistribution and equality: How important is social capital?", Bishop, J. and Amiel, Y. (Ed.) Inequality and Poverty (Research on Economic Inequality, Vol. 14), Emerald Group Publishing Limited, Leeds, pp. 31-47. https://doi.org/10.1016/S1049-2585(06)14002-8