Rational Behavior versus Social Preferences: What determines Attitudes towards Income Redistribution?

Abstract

Should rich people pay higher taxes? To answer this question an individual needs to consider his attitudes towards income redistribution. Such preferences might be based on the individual income but also on social factors. Using socioeconomic data we find that self-interested motives are indeed an important driver for the preferences of income redistribution. However , our analysis reveals that social preferences are even stronger predictors and should always be accounted for in this field of research. In addition we include altruistic motives and find that women and rich people are more likely to support redistribution if the money is used to directly help the poor.