Equal Opportunities for All? How Income Redistribution Promotes Support for Economic Inclusion

Publikation: Working paper › Forskning

Standard

Equal Opportunities for All? How Income Redistribution Promotes Support for Economic Inclusion. / Reindl, Ilona; Tyran, Jean-Robert Karl.

2020.

Publikation: Working paper › Forskning

Harvard

Reindl, I & Tyran, J-RK 2020 'Equal Opportunities for All? How Income Redistribution Promotes Support for Economic Inclusion'. https://doi.org/10.2139/ssrn.3719120

APA

Reindl, I., & Tyran, J-R. K. (2020). Equal Opportunities for All? How Income Redistribution Promotes Support for Economic Inclusion. University of Copenhagen. Institute of Economics. Discussion Papers (Online) Nr. 20-07 https://doi.org/10.2139/ssrn.3719120

Vancouver

Reindl I, Tyran J-RK. Equal Opportunities for All? How Income Redistribution Promotes Support for Economic Inclusion. 2020 dec. 30. https://doi.org/10.2139/ssrn.3719120

Author

Reindl, Ilona ; Tyran, Jean-Robert Karl. / Equal Opportunities for All? How Income Redistribution Promotes Support for Economic Inclusion. 2020. (University of Copenhagen. Institute of Economics. Discussion Papers (Online); Nr. 20-07).

Bibtex

@techreport{c1c784b8b07d4411b824cc71cf5c0e4f,
title = "Equal Opportunities for All? How Income Redistribution Promotes Support for Economic Inclusion",
abstract = "We experimentally investigate how income redistribution shapes support for economic inclusion, i.e., a policy that creates equality of opportunity for income generation. We study a setting in which low-endowment subjects are excluded from investment opportunities unless those with high endowments transfer resources to the low-endowment subjects. We find that support for economic inclusion is stronger among high-endowment subjects if incomes are known to be redistributed in the future compared to a situation in which this is precluded by design. Income redistribution spreads both risks and returns of investments in the population which, in turn, induces a higher rate of profitable investments, and this prospect tends to foster support for economic inclusion. Income redistribution thus induces more equal and efficient outcomes by boosting popular support for economic inclusion.",
keywords = "laboratory experiment, income redistribution, economic inclusion, equality of opportunity, investment, risk taking, laboratory experiment, income redistribution, economic inclusion, equality of opportunity, investment, risk taking",
author = "Ilona Reindl and Tyran, {Jean-Robert Karl}",
year = "2020",
month = dec,
day = "30",
doi = "10.2139/ssrn.3719120",
language = "English",
series = "University of Copenhagen. Institute of Economics. Discussion Papers (Online)",
number = "20-07",
type = "WorkingPaper",

}

RIS

TY - UNPB

T1 - Equal Opportunities for All? How Income Redistribution Promotes Support for Economic Inclusion

AU - Reindl, Ilona

AU - Tyran, Jean-Robert Karl

PY - 2020/12/30

Y1 - 2020/12/30

N2 - We experimentally investigate how income redistribution shapes support for economic inclusion, i.e., a policy that creates equality of opportunity for income generation. We study a setting in which low-endowment subjects are excluded from investment opportunities unless those with high endowments transfer resources to the low-endowment subjects. We find that support for economic inclusion is stronger among high-endowment subjects if incomes are known to be redistributed in the future compared to a situation in which this is precluded by design. Income redistribution spreads both risks and returns of investments in the population which, in turn, induces a higher rate of profitable investments, and this prospect tends to foster support for economic inclusion. Income redistribution thus induces more equal and efficient outcomes by boosting popular support for economic inclusion.

AB - We experimentally investigate how income redistribution shapes support for economic inclusion, i.e., a policy that creates equality of opportunity for income generation. We study a setting in which low-endowment subjects are excluded from investment opportunities unless those with high endowments transfer resources to the low-endowment subjects. We find that support for economic inclusion is stronger among high-endowment subjects if incomes are known to be redistributed in the future compared to a situation in which this is precluded by design. Income redistribution spreads both risks and returns of investments in the population which, in turn, induces a higher rate of profitable investments, and this prospect tends to foster support for economic inclusion. Income redistribution thus induces more equal and efficient outcomes by boosting popular support for economic inclusion.

KW - laboratory experiment

KW - income redistribution

KW - economic inclusion

KW - equality of opportunity

KW - investment

KW - risk taking

KW - laboratory experiment

KW - income redistribution

KW - economic inclusion

KW - equality of opportunity

KW - investment

KW - risk taking

U2 - 10.2139/ssrn.3719120

DO - 10.2139/ssrn.3719120

M3 - Working paper

T3 - University of Copenhagen. Institute of Economics. Discussion Papers (Online)

BT - Equal Opportunities for All? How Income Redistribution Promotes Support for Economic Inclusion

ER -

ID: 254467544