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Citation Information

Type Working Paper
Title Local exposure to inequality among the poor increases support for taxing the rich
Author(s)
Publication (Day/Month/Year) 2019
URL file:///C:/Users/DKCSAM001/AppData/Local/Packages/Microsoft.MicrosoftEdge_8wekyb3d8bbwe/TempState/Do​wnloads/local_inequality (1).pdf
Abstract
How does local economic inequality a?ect the preferences and behaviors of the poor? We present a placebo-controlled ?eld experiment conducted in Soweto, South Africa, that randomly varies exposure to inequality in low socio-economic settings. We ?nd that willingness to sign a petition that calls for higher taxes on the wealthy increases in the presence of a high-status car. To probe the generality of the experimental ?nding, we combine a representative geo-referenced survey with neighborhood-level censusderived measures of local inequality, a proxy for direct encounters with tangible reminders of economic inequality. Observationally, exposure to inequality among the poor is associated with an increase in support for taxing the wealthy.

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