Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/302672 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17155
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Support for redistribution depends on whether inequality stems from differences in performance or luck, but different sources of luck may impact redistribution differentially. We elicit redistribution decisions from a U.S.-representative sample who observe worker earnings and whether luck influenced their earnings directly ("lucky outcomes") or indirectly by providing a relative advantage ("lucky opportunities"). Participants redistribute less under lucky opportunities. When assessing the impact of unequal opportunities, individuals rely on a heuristic that leads them to underestimate how even a small relative advantage can substantially influence worker earnings. Our findings highlight the role of inferential challenges in shaping attitudes towards inequality.
Subjects: 
unequal opportunities
inequality
redistribution
luck
JEL: 
C91
D63
Document Type: 
Working Paper

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