Explaining support for redistribution: social insurance systems and fairness

Author:

Fetscher VerenaORCID

Abstract

Abstract Why do high-income earners support higher levels of income redistribution in some countries than in others? I argue that differences in the social insurance design have consequences for fairness considerations and that this matters for preference formation. Flat-rate systems provide social benefits in equal amounts to everyone in need, while earnings-related systems provide benefits in relation to previous earnings. In the case of income loss, earnings-related systems maintain unfair income differences, while flat-rate systems equalize unfair income differences between the rich and the poor. Cross-national patterns reveal that support for redistribution among the rich is higher in income-maintaining welfare states. For a strict test of my fairness argument, I conduct a laboratory experiment and show that participants reduce inequality more if given endowment differences are maintained in the case of loss.

Funder

SFB 884 at the University of Mannheim

Publisher

Cambridge University Press (CUP)

Subject

Political Science and International Relations,Sociology and Political Science

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