Equal opportunities for all? How income redistribution promotes support for economic inclusion

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2021
Volume: 190
Issue: C
Pages: 390-407

Authors (2)

Reindl, Ilona (not in RePEc) Tyran, Jean-Robert (Universität Wien)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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 when incomes are known to be redistributed in the future compared to when redistribution 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.

Technical Details

RePEc Handle
repec:eee:jeborg:v:190:y:2021:i:c:p:390-407
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29