Equal Opportunities for All? How Income Redistribution Promotes Support for Economic Inclusion
Publikation: Working paper › Forskning
Standard
Equal Opportunities for All? How Income Redistribution Promotes Support for Economic Inclusion. / Reindl, Ilona; Tyran, Jean-Robert Karl.
2020.Publikation: Working paper › Forskning
Harvard
APA
Vancouver
Author
Bibtex
}
RIS
TY - UNPB
T1 - Equal Opportunities for All? How Income Redistribution Promotes Support for Economic Inclusion
AU - Reindl, Ilona
AU - Tyran, Jean-Robert Karl
PY - 2020/12/30
Y1 - 2020/12/30
N2 - We experimentally investigate how income redistribution shapes support for economic inclusion, i.e., a policy that creates equality of opportunity for income generation. We study a setting in which low-endowment subjects are excluded from investment opportunities unless those with high endowments transfer resources to the low-endowment subjects. We find that support for economic inclusion is stronger among high-endowment subjects if incomes are known to be redistributed in the future compared to a situation in which this is precluded by design. Income redistribution spreads both risks and returns of investments in the population which, in turn, induces a higher rate of profitable investments, and this prospect tends to foster support for economic inclusion. Income redistribution thus induces more equal and efficient outcomes by boosting popular support for economic inclusion.
AB - We experimentally investigate how income redistribution shapes support for economic inclusion, i.e., a policy that creates equality of opportunity for income generation. We study a setting in which low-endowment subjects are excluded from investment opportunities unless those with high endowments transfer resources to the low-endowment subjects. We find that support for economic inclusion is stronger among high-endowment subjects if incomes are known to be redistributed in the future compared to a situation in which this is precluded by design. Income redistribution spreads both risks and returns of investments in the population which, in turn, induces a higher rate of profitable investments, and this prospect tends to foster support for economic inclusion. Income redistribution thus induces more equal and efficient outcomes by boosting popular support for economic inclusion.
KW - laboratory experiment
KW - income redistribution
KW - economic inclusion
KW - equality of opportunity
KW - investment
KW - risk taking
KW - laboratory experiment
KW - income redistribution
KW - economic inclusion
KW - equality of opportunity
KW - investment
KW - risk taking
U2 - 10.2139/ssrn.3719120
DO - 10.2139/ssrn.3719120
M3 - Working paper
T3 - University of Copenhagen. Institute of Economics. Discussion Papers (Online)
BT - Equal Opportunities for All? How Income Redistribution Promotes Support for Economic Inclusion
ER -
ID: 254467544