Does Wealth Reduce Support for Redistribution? Evidence from an Ethiopian Housing Lottery
Link to article:
Authors:
Andersen, A.G, Franklin, S., Getahun, T, Kotsadam, A., Somville, V., and Villanger, E.
Year:
2023
Reference:
Vol 224, 104939Summary
Exploiting the variation in wealth created by an Ethiopian housing lottery, we show that general attitudes towards redistribution and inequality aversion are not affected by a large positive wealth shock. New homeowners are, however, less supportive of taxing homeowners, highlighting a potential conflict between self-interest and preferences for redistribution. We also find evidence of endogenous beliefs: relative to losers, the wealthier winners are less likely to emphasize the role of luck in explaining economic success. We interpret this finding in terms of a self-serving bias.
