Poverty, ethnic minorities among the poor, and preferences for redistribution in European regions

Abstract

In what social contexts are rich people more likely to support government redistribution of income? Motivated by the literature on inequality aversion and the literature on the relationship between ethnic fractionalization and redistribution, the paper examines whether the relationship between own income and redistributive preferences depends on the regional level of poverty and the ethnic composition of the poor. Using data from the European Social Survey, the paper demonstrates that support for redistribution among the rich is lower when the proportion of ethnic minorities among the poor is high. Several possible mechanisms to account for this relationship are examined. The paper finds no support for explanations based on more animosity towards the poor or towards ethnic minorities and no support for explanations based on lower social trust or social capital: instead, rich people are less concerned with downward income mobility when the proportion of minorities among the poor is high.