In this paper we study the determinants of peopleís attitudes toward income inequality and their economic consequences. We argue that an individualís atti- tudes toward inequality depend upon the extent of freedom of choice and control over life outcomes he enjoys. We construct a two-stage empirical model where people Örst choose the level of income transfers and then their optimal level of ef- fort. We Önd that the higher the extent of an individualís free choice and control over life outcomes, the greater the probability that he supports larger income di§erences as incentives for individual e§ort. We also show that this relationship determines important consequences for the individualís willingness to work.

Navarra, P., Bavetta, S. (2012). Freedom and Redistribution. RIVISTA DI POLITICA ECONOMICA, Luglio/Settembre 2012(Luglio/Settembre 2012), 29-49.

Freedom and Redistribution

BAVETTA, Sebastiano
2012-01-01

Abstract

In this paper we study the determinants of peopleís attitudes toward income inequality and their economic consequences. We argue that an individualís atti- tudes toward inequality depend upon the extent of freedom of choice and control over life outcomes he enjoys. We construct a two-stage empirical model where people Örst choose the level of income transfers and then their optimal level of ef- fort. We Önd that the higher the extent of an individualís free choice and control over life outcomes, the greater the probability that he supports larger income di§erences as incentives for individual e§ort. We also show that this relationship determines important consequences for the individualís willingness to work.
Settore SECS-P/01 - Economia Politica
Settore SECS-P/03 - Scienza Delle Finanze
Navarra, P., Bavetta, S. (2012). Freedom and Redistribution. RIVISTA DI POLITICA ECONOMICA, Luglio/Settembre 2012(Luglio/Settembre 2012), 29-49.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10447/78539
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