Intergenerational Educational Mobility and Preferences for Redistribution in Europe

Intergenerational Mobility and Redistributive Preferences

Authors

Keywords:

Redistributive Preferences; Social Mobility; Economic Inequality; Equality of Opportunity

Abstract

We study how preferences for redistribution vary at the individual level in Europe. Using survey data from a large subset of European countries, we show that controlling for socio-economic and demographic characteristics, personal intergenerational educational movements play a decisive role in redistributive preferences: individuals with low educational attainment and born to low-educated parents favor redistributing incomes more. Matching subjects with their experienced country-cohort-gender-specific intergenerational educational mobility estimates, we further show that individuals whose clusters faced better upward mobility prospects when growing up are more in favor of equalizing incomes. We offer a parsimonious economic model that accords well with these novel findings.

Author Biography

Oğuz Öztunalı, Istanbul Bilgi University

Assistant Professor of Economics at Istanbul Bilgi University

References

Alesina, A. and Giuliano, P. (2011). Preferences for Redistribution. In Benhabib, J., Bisin, A., and Jackson, M. O., editors, Handbook of Social Economics, volume 1 of Handbook of Social Economics, chapter 4, pages 93–131. North-Holland.

Alesina, A. and La Ferrara, E. (2005). Preferences for Redistribution in the Land of Opportunities. Journal of Public Economics, 89(5-6):897–931.

Alesina, A. F. and Angeletos, G.-M. (2005). Fairness and Redistribution. American Economic Review, 95(4):960–980.

Alesina, A. F. and Glaeser, E. L. (2004). Fighting Poverty in the US and Europe. A World of Difference. Oxford University Press.

Alesina, A. F., Stantcheva, S., and Teso, E. (2018). Intergenerational Mobility and Preferences for Redistribution. American Economic Review, 108(2):521–554.

Bavetta, S., Li Donni, P., and Marino, M. (2019). An Empirical Analysis of the Determinants of Perceived Inequality. Review of Income and Wealth, 65(2):264–292.

Bénabou, R. (2000). Unequal Societies: Income Distribution and the Social Contract. American Economic Review, 90(1):96–129.

Bénabou, R. and Ök, E. A. (2001). Social Mobility and the Demand for Redistribution: The POUM Hypothesis. Quarterly Journal of Economics, 116(2):447.

Bénabou, R. and Tirole, J. (2006). Belief in a Just World and Redistributive Politics. Quarterly Journal of Economics, 121(2):699–746.

Chambers, J. R., Swan, L. K., and Heesacker, M. (2015). Perceptions of us social mobility are divided (and distorted) along ideological lines. Psychological science, 26(4):413–423.

Choi, G. (2019). Revisiting the redistribution hypothesis with perceived inequality and redistributive preferences. European Journal of Political Economy, 58:220–244.

Cojocaru, A. (2014a). Fairness and Inequality Tolerance: Evidence from the Life in Transition Survey. Journal of Comparative Economics, 42(3):590–608.

Cojocaru, A. (2014b). Prospects of Upward Mobility and Preferences for Redistribution: Evidence from the Life in Transition Survey. European Journal of Political Economy, 34:300–314.

Corak, M. (2013). Income Inequality, Equality of Opportunity, and Intergenerational Mobility. Journal of Economic Perspectives, 27(3):79–102.

Corneo, G. and Grüner, H. P. (2002). Individual Preferences for Political Redistribution. Journal of Public Economics, 83(2-3):83–107.

Fong, C. (2001). Social preferences, self-interest, and the demand for redistribution. Journal of Public Economics, 82(2):225–246.

Gimpelson, V. and Treisman, D. (2017). Misperceiving Inequality. Economics & Politics, 30(1):27–54.

Gördal, M. Y., Torul, O., and Vostroknutov, A. (2020). Norm compliance, enforcement, and the survival of redistributive institutions. Journal of Economic Behavior and Organization, 178:313–326.

Hassler, J., Mora, J. V. R., Storesletten, K., and Zilibotti, F. (2003). The Survival of the Welfare State. American Economic Review, 93(1):87–112.

Hedegaard, M., Kerschbamer, R., Müller, D., and Tyran, J.-R. (2021). Distributional preferences explain individual behavior across games and time. Games and Economic Behavior, 128:231–255.

Hoy, C. and Mager, F. (2021). American exceptionalism? differences in the elasticity of preferences for redistribution between the United States and western Europe. Journal of Economic Behavior and Organization, 192:518–540.

Hvidberg, K. B., Kreiner, C. T., and Stantcheva, S. (2023). Social Positions and Fairness Views on Inequality. The Review of Economic Studies, page rdad019.

Jaime-Castillo, A. M., Fernández, J. J., Valiente, C., and Mayrl, D. (2016). Collective religiosity and the gender gap in attitudes towards economic redistribution in 86 countries, 1990–2008. Social Science Research, 57:17–30.

Kerr, W. R. (2014). Income Inequality and Social Preferences for Redistribution and Compensation Differentials. Journal of Monetary Economics, 66:62–78.

Kerschbamer, R. and Müller, D. (2020). Social preferences and political attitudes: An online experiment on a large heterogeneous sample. Journal of Public Economics, 182:104076.

Krawczyk, M. (2010). A Glimpse Through the Veil of Ignorance: Equality of Opportunity and Support for Redistribution. Journal of Public Economics, 94(1-2):131–141.

Laméris, M. D., Garretsen, H., and Jong-A-Pin, R. (2020). Political ideology and the intragenerational prospect of upward mobility. European Journal of Political Economy, page 101854.

Martorano, B. and Günther, I. (2023). Inequality, social mobility and redistributive preferences. Working- Paper 017, UNU-MERIT.

Mengel, F. and Weidenholzer, E. (2022). Preferences for redistribution. Journal of Economic Surveys, Forthcoming.

Mogstad, M. and Torsvik, G. (2023). Handbook of the Economics of the Family, volume 1, chapter Family Background, Neighborhoods and Intergenerational Mobility. North Holland.

Narayan, A., Van der Weide, R., Cojocaru, A., Lakner, C., Redaelli, S., Gerszon Mahler, D., Ramasubbaiah, R. G. N., and Thewissen, S. (2018). Fair Progress?: Economic Mobility across Generations around the World.

Neidhöfer, G., Serrano, J., and Gasparini, L. (2018). Educational Inequality and Intergenerational Mobility in Latin America: A New Database. Journal of Development Economics, 134:329–349.

Piketty, T. (1995). Social Mobility and Redistributive Politics. Quarterly Journal of Economics, 110(3):551– 584.

Reindl, I. and Tyran, J.-R. (2021). Equal opportunities for all? how income redistribution promotes support for economic inclusion. Journal of Economic Behavior and Organization, 190:390–407.

Saint-Paul, G. (2001). The Dynamics of Exclusion and Fiscal Conservatism. Review of Economic Dynamics, 4(2):275–302.

Shariff, A. F., Wiwad, D., and Aknin, L. B. (2016). Income mobility breeds tolerance for income inequality: Cross-national and experimental evidence. Perspectives on Psychological Science, 11(3):373–380.

Sorokin, P. A. (1959). Social and cultural mobility. New York, 4:99–145.

Stantcheva, S. (2021). Perceptions and preferences for redistribution. Working Paper 29370, National Bureau of Economic Research.

Sznycer, D., Seal, M. F. L., Sell, A., Lim, J., Porat, R., Shalvi, S., Halperin, E., Cosmides, L., and Tooby, J. (2017). Support for redistribution is shaped by compassion, envy, and self-interest, but not a taste for fairness. Proceedings of the National Academy of Sciences, 114(31):8420–8425.

Torul, O. (2020). Education in a heterogeneous-agent economy: Revisiting transatlantic differences. Journal of Human Capital, 14(2):165–216.

Torul, O. and Öztunalı, O. (2017). Intergenerational Educational Mobility in Europe. Boˇgaziçi University, Department of Economics Working Papers 2017/03. Available at http://web.boun.edu.tr/torul/ ieme.pdf.

Winthrop, R., Bulloch, G., Bhatt, P., and Wood, A. (2016). Development Goals in an Era of Demographic Change. Global Monitoring Report, 2016

Published

2024-01-30

How to Cite

Torul, O., & Öztunalı, O. (2024). Intergenerational Educational Mobility and Preferences for Redistribution in Europe: Intergenerational Mobility and Redistributive Preferences. Journal of Income Distribution®. Retrieved from https://jid.journals.yorku.ca/index.php/jid/article/view/40566

Issue

Section

Articles

Similar Articles

<< < 15 16 17 18 19 20 21 22 23 24 > >> 

You may also start an advanced similarity search for this article.