Inequality and Changes in Redistributive Policy Preferences Since 2008

• In Event: Public Support for Redistribution Revisited

Abstract

We would expect rising inequality, especially top-end inequality, to boost support for redistribution among low- and middle-income citizens. As several studies have shown, we find precious little evidence in support of this proposition if we look at responses to the standard redistribution question in ISSP and ESS surveys. Arguably, the standard ISSP/ESS question is too broad and too closely associated with ideological orientations to capture the effects of changes in inequality and economic conditions. This paper documents significant changes in responses to more specific policy questions from ESS 2008 to our own survey of the US and 13 West European countries carried out in 2019. In all 14 countries, we observe significant increases in support for flat-rate as opposed to earnings-differentiated pension and unemployment benefits and in support for more progressive income taxation. In most countries, we also observe a significant increase in polarization of policy preferences by income. We proceed to show that cross-national differences in the extent of these shifts broadly correspond to cross-national differences in inequality trajectories prior to the economic crisis of 2008-09. We argue that post-crisis income stagnation have rendered pre-crisis inequality growth more relevant for public policy preferences.

Authors

• Jonas Pontusson, University of Geneva

• Jan Rosset