Preferences for Redistribution in Transition Countries
نویسنده
چکیده
In this paper we analyze the attitudes of residents of transition countries with speci c focus on whether they have a strong taste for income redistribution. We implement emprical strategies to test the implications of the basic theoretical models in the literature regarding preferences for redistribution. Empirical models of survey respondents preference for redistribution, willingness to pay for welfare programs, and preferences for inequality as a work incentive are estimated. Particular focus is placed on testing the prospect of upward mobility (POUM) hypothesis which holds that people below the median, expecting their future income to be higher than their current income, have less desire for redistribution. Evidence presented in this paper indicates that POUM generally describes the attitudes of survey respondents in transition countries. Data used in this study are from the European Bank for Reconstruction and Development (EBRD) Life in Transition Survey (LITS II) for the year 2010). JEL codes: E21, H11, H31, H53, I38, P27
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