Differences in attitudes towards welfare and redistribution are an important source of political tension, especially during recessions. What factors shape people’s attitudes towards welfare and redistribution?
There are two main strands of thought on this question in the literature. One strand emphasizes economic self-interest as a key determinant of attitudes toward welfare and distribution. According to this view, people’s position in the labor market, exposure to layoff risk, and financial status are the main factors determining their attitudes. Another strand emphasizes different ideological dispositions on issues such as fairness, equality, and the role of government.
It is empirically difficult to distinguish between the two strands, since material circumstances and ideology may influence each other. Two recent papers — one from Berkeley — take advantage of the Great Recession in their empirical design to study social preference formation. [cont.]
Carola Binder, UC Berkeley