Preferences for redistribution and exposure to tax-benefit schemes in Europe

Abstract

This paper provides evidence that attitudes towards redistribution are associated with the extent of generosity of the redistributive context experienced by the individual, as measured by the likelihood of receiving positive benefit transfers net of fiscal contribution. We estimate reduced form tax-benefit equations with the EU Statistics on Income and Living Conditions (EU-SILC), and match the implied parameters to the respondents of the European Social Survey (ESS) on the basis of their characteristics. The period of analysis is 2008-2016. For identification, we exploit exogenous crosscountry and time variation in tax rules and market income to disentangle implications of exposure to tax-benefit rules on preferences for redistribution from the effects of changes in income inequality. We find that exposure to positive net benefits increases demand for redistribution by about 1.2%, the effect being robust across a variety of specifications. The signs of the effects are consistent with those predicted by a simple model where exposure to redistribution affects expectations for consumption, but risk averse individuals discount this effect by the nature of income shocks they are exposed to in the market.

Public Support for Tax Policies in COVID-19 Times: Evidence from Luxembourg

“…For example, 75% and 52% of respondents were in favour (agreed or strongly agreed) of a 0.5% or 2.0% tax rate, respectively, levied on net wealth in excess of EUR 4 million; but the support fell to 38% when the tax rate is 2% and the exception amount is EUR 2 million. These findings contribute to the literature investigating preferences for redistribution (e.g., Alesina & Giuliano, 2011;Andreoli & Olivera, 2020;Olivera, 2015), particularly to the studies assessing attitudes to tax policy (Stantcheva, 2020;Rowlingson et al, 2021) and feasibility of wealth taxation (Saez & Zucman, 2019;Scheuer & Slemrod, 2021). Closest to our study is the report by Rowlingson et al (2021) measuring attitudes towards the introduction of a wealth tax in the United Kingdom.…”

Gender representation and language politeness in speech acts: A pragmatic study

“…Another speech form found in female students' speech towards female teachers was assertive speech. Assertive speech is speech that functions to state the truth of the proposition being expressed (Andreoli & Olivera 2020).…”

Public support for tax policies in COVID-19 times: evidence from Luxembourg

“…These findings contribute to the literature investigating preferences for redistribution (e.g., Alesina & Giuliano, 2011 ; Andreoli & Olivera, 2020 ; Olivera, 2015 ), particularly to the studies assessing attitudes to tax policy (Stantcheva, 2020 ; Rowlingson et al, 2021 ) and feasibility of wealth taxation (Saez & Zucman, 2019 ; Scheuer & Slemrod, 2021 ). Closest to our study is the report by Rowlingson et al ( 2021 ) measuring attitudes towards the introduction of a wealth tax in the United Kingdom.…”