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- Title
A ‘Leaky Bucket’ in the Real World: Estimating Inequality Aversion using Survey Data.
- Authors
PIRTTILA, JUKKA; UUSITALO, ROOPE
- Abstract
Existing evidence of inequality aversion relies on data from class-room experiments where subjects face hypothetical questions. This paper estimates the magnitude of inequality aversion using representative survey data, with questions related to the real-economy situations the respondents face. The results reveal that inequality aversion can be measured in a meaningful way using survey data, but the magnitudes of the estimates depend dramatically on how inequality aversion is measured. No matter how measured, the revealed inequality aversion predicts opinions on a wide range of questions related to the welfare state, such as the level of taxation, tax progressivity and the structure of unemployment benefits.
- Subjects
EQUALITY; ECONOMICS; INCOME inequality; PUBLIC welfare; TAXATION; ECONOMISTS
- Publication
Economica, 2010, Vol 77, Issue 305, p60
- ISSN
0013-0427
- Publication type
Article
- DOI
10.1111/j.1468-0335.2008.00729.x