Research Repository

Class Altruism and Redistribution

Ghiglino, Christian and Juárez-Luna, David and Müller, Andreas (2021) 'Class Altruism and Redistribution.' The Economic Journal, 131 (640). pp. 3274-3295. ISSN 0013-0133

ueab022.pdf - Published Version
Available under License Creative Commons Attribution Non-commercial.

Download (320kB) | Preview


Why do tax rates vary so much across countries? We study the role of other-regarding preferences and ethnic fragmentation in redistribution. A government is elected by altruistic voters and chooses a redistributive income tax. Altruism is directed toward social identity groups. Three main factors yield low levels of redistribution: (i) strong in-group altruism among rich voters—referred to as class altruism; (ii) weak universal altruism—in particular among the rich; and (iii) ethnic fragmentation among poor voters. We document survey evidence that the pattern of altruism in the United States and the European Union is consistent with the observed differences in taxes.

Item Type: Article
Additional Information: Source info: CEPR Discussion Paper No. DP15793
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Economics, Department of
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 23 Mar 2021 09:55
Last Modified: 06 Jan 2022 14:16

Actions (login required)

View Item View Item