Unequal and Unsupportive: Exposure to the Poor Negatively Affects Support for Redistribution among the Rich
PS6-3
Presented by: Matias Engdal Christensen, Peter Thisted Dinesen, Kim Mannemar Sønderskov
Do the rich become more supportive of redistribution when they are exposed to inequality on an everyday basis? The extant literature provides mixed evidence on the relationship between local inequality—specifically exposure to poorer individuals among the well-off—and support for redistribution with most studies answering this question in the affirmative, while a single, but prominent study find that the wealthy become less supportive of redistribution when exposed to poorer people. This paper sets out to resolve the divergent findings in the literature by analyzing the relationship between exposure to poor individuals and support for redistribution. We do this by employing a design closer to the studies that have found a positive relationship, but with more causal leverage than these (a three-wave panel design linked to fine-grained registry data on local income composition from Denmark), to study the consequences of exposure to poor among the better-off over longer periods of time. In within-individual models analyzed by means of two-way fixed effects, we find that exposure to poor individuals is associated with lower support for redistribution among wealthier individuals. Further, when analyzed cross-sectionally (in between-individual models), we find a positive relationship between exposure to poor individuals and support for redistribution among the better-off, thus indicating that self-selection based on stable characteristics (which are held constant in the within-individual models) is a likely explanation for previous findings of a positive relationship between rich people’s exposure to poor neighbors and their support for redistribution.