Does Inequality Breed Altruism or Selfishness? Gauging Individuals' Predispositions towards Redistributive Schemes

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Peer Reviewed icon Peer Reviewed
Date issued
Jan 2012
Subject
Poverty;
Social Policy and Protection;
Fiscal Policy;
Education
JEL code
H53 - Government Expenditures and Welfare Programs;
I28 - Government Policy;
I38 - Government Policy • Provision and Effects of Welfare Programs
Country
Brazil
Category
Working Papers
While decreasing inequality is generally considered desirable, and there is a growing understanding of which policies do and do not promote equality, much less is known regarding why these policies are adopted to varying degrees of intensity in different times and places. To explain this variation, the constituencies for different policies under various conditions must be identified. This paper explores that question using Brazilian public opinion data on preferences regarding taxation, conditional cash transfers, pension schemes and educations. It is found that disagreement across socio-economic groups arises on how government should address inequality rather than whether it should do so. While poorer respondents support cash transfers more than the rich, the rich are more likely than the poor to support expenditures on public education. Contrary to what is commonly assumed, inequality seems to breed altruism among the rich regarding the quintessential poverty reduction scheme of conditional cash transfers.
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