Does Wealth Reduce Support for Redistribution? Evidence from an Ethiopian Housing Lottery
The paper titled "Does Wealth Reduce Support for Redistribution? Evidence from an Ethiopian Housing Lottery" by Asbjørn G. Andersen, Simon Franklin, Tigabu Getahun, Andreas Kotsadam, Vincent Somville and Espen Villanger has been published in Journal of Public Economics.
Exploiting the variation in wealth created by an Ethiopian housing lottery, we show that general attitudes towards redistribution and inequality aversion are not affected by a large positive wealth shock. New homeowners are, however, less supportive of taxing homeowners, highlighting a potential conflict between self-interest and preferences for redistribution. We also find evidence of endogenous beliefs: relative to losers, the wealthier winners are less likely to emphasize the role of luck in explaining economic success. We interpret this finding in terms of a self-serving bias.