Local exposure to inequality among the poor increases support for taxing the rich

Type Working Paper
Title Local exposure to inequality among the poor increases support for taxing the rich
Author(s)
Publication (Day/Month/Year) 2019
URL file:///C:/Users/DKCSAM001/AppData/Local/Packages/Microsoft.MicrosoftEdge_8wekyb3d8bbwe/TempState/Do​wnloads/local_inequality (1).pdf
Abstract
How does local economic inequality a?ect the preferences and behaviors of the poor? We present a placebo-controlled ?eld experiment conducted in Soweto, South Africa, that randomly varies exposure to inequality in low socio-economic settings. We ?nd that willingness to sign a petition that calls for higher taxes on the wealthy increases in the presence of a high-status car. To probe the generality of the experimental ?nding, we combine a representative geo-referenced survey with neighborhood-level censusderived measures of local inequality, a proxy for direct encounters with tangible reminders of economic inequality. Observationally, exposure to inequality among the poor is associated with an increase in support for taxing the wealthy.

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