Research Teams

DIE 01/20 - ¿A mayor desigualdad mayores preferencias por la redistribución? Exploración del vínculo a nivel individual para el caso uruguayo.

ISSNISSN/ISBN: 2301-1963
AutorAuthor/s: Torres, Joaquín
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The main objective of this study is to explore the way in which perceived inequality represents a determinant of the formation of preferences for redistribution in Uruguay. Using data from the fourth wave of the ELBU panel, estimates are made in order to capture different measures of individuals’ preferences for redistribution. Firstly, the results do indeed show that the impact of the different factors is not homogeneous on the different redistributive preferences. In general terms, redistributive preferences seem to be conditioned by the individuals’ self-interest, who do not want to bear the cost of the policy -consistent results with regard to the expectations are evident with a more progressive redistributive policy; in other words, taxing more those with higher
incomes-. Secondly, no significant effects are found, on average, of perceived inequality per se as a determinant of the formation of preferences among Uruguayans. However, when incorporating self-perceived class and belief about what originates inequality, the results show: firstly that, regardless of the level of perceived inequality, those who perceive themselves as lower class or believe that inequality is a product of events not under individuals' control (fate) are more in favor of redistributing; and secondly, that the level of perceived inequality is relevant among those who perceive themselves as middle or upper class or believe that inequality is a product of events under individuals' responsibility (effort). Likewise, this work also represents a first approximation regarding how Uruguayans perceive that income is distributed in Uruguay.
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