Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/240411 
Year of Publication: 
2020
Series/Report no.: 
WWZ Working Paper No. 2020/02
Publisher: 
University of Basel, Center of Business and Economics (WWZ), Basel
Abstract: 
Do rising inequality and youth unemployment aect preferences for redistribution? Using country-level European survey data from 2002 to 2015, I show that changes in market inequality and the rise of (youth) unemployment increase preferences for redistribution. The ndings are supported by the respondents' fairness concerns. Estimated effects exhibit substantial heterogeneity. There is systematic variation among fairness concerns with respect to income and health, which are triggered by market income inequality and (youth) unemployment. The preferences of the relatively rich and healthy are more responsive to the level of inequality and youth unemployment. At very high youth unemployment rates, even the rich might be in favor of redistribution. Results suggest that "income-and health-dependent fairness concerns" exist.
Subjects: 
Preferences for redistribution
Inequality
Fairness concerns
Income-dependent altruism
Health-dependent-altruism
Youth unemployment
unemployment
Meltzer-Richards
Inequality
Market inequality
JEL: 
A13
D10
D31
D63
H23
C3
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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