Biased Perceptions of Income Distribution and Preferences for Redistribution: Evidence from a Survey Experiment

Autores
Cruces, Guillermo Antonio; Perez Truglia, Ricardo Nicolas; Tetaz, Martin Alberto
Año de publicación
2011
Idioma
inglés
Tipo de recurso
artículo
Estado
versión publicada
Descripción
Individual perceptions of income distribution play a vital role in political economy and public finance models, yet there is little evidence regarding their origins or accuracy. This study examines how individuals form these perceptions and posits that systematic biases arise from the extrapolation of information extracted from reference groups. A tailored household survey provides original evidence on the significant biases in individuals’ evaluations of their own relative position in the distribution. Furthermore, the data supports the hypothesis that the selection process into the reference groups is the source of those biases. Finally, this study also assesses the practical relevance of these biases by examining their impact on attitudes towards redistributive policies. An experimental design incorporated into the survey provides consistent information on the own ranking within the income distribution to a randomly selected group of respondents. Confronting agents’ biased perceptions with this information has a significant effect on their stated preferences for redistribution. Those who had overestimated their relative position and thought of themselves relatively richer than they were demand higher levels of redistribution when informed of their true ranking. This relationship between biased perceptions and political attitudes provides an alternative explanation for the relatively low degree of redistribution observed in modern democracies.
Fil: Cruces, Guillermo Antonio. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas. Centro de Estudios Distributivos Laborales y Sociales; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; Argentina
Fil: Perez Truglia, Ricardo Nicolas. Harvard University; Estados Unidos
Fil: Tetaz, Martin Alberto. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas. Centro de Estudios Distributivos Laborales y Sociales; Argentina
Materia
Perceptions of income distribution
Preferences for redistribution
Nivel de accesibilidad
acceso abierto
Condiciones de uso
https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
Repositorio
CONICET Digital (CONICET)
Institución
Consejo Nacional de Investigaciones Científicas y Técnicas
OAI Identificador
oai:ri.conicet.gov.ar:11336/102500
Acceder
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spelling Biased Perceptions of Income Distribution and Preferences for Redistribution: Evidence from a Survey ExperimentCruces, Guillermo AntonioPerez Truglia, Ricardo NicolasTetaz, Martin AlbertoPerceptions of income distributionPreferences for redistributionhttps://purl.org/becyt/ford/5.2https://purl.org/becyt/ford/5Individual perceptions of income distribution play a vital role in political economy and public finance models, yet there is little evidence regarding their origins or accuracy. This study examines how individuals form these perceptions and posits that systematic biases arise from the extrapolation of information extracted from reference groups. A tailored household survey provides original evidence on the significant biases in individuals’ evaluations of their own relative position in the distribution. Furthermore, the data supports the hypothesis that the selection process into the reference groups is the source of those biases. Finally, this study also assesses the practical relevance of these biases by examining their impact on attitudes towards redistributive policies. An experimental design incorporated into the survey provides consistent information on the own ranking within the income distribution to a randomly selected group of respondents. Confronting agents’ biased perceptions with this information has a significant effect on their stated preferences for redistribution. Those who had overestimated their relative position and thought of themselves relatively richer than they were demand higher levels of redistribution when informed of their true ranking. This relationship between biased perceptions and political attitudes provides an alternative explanation for the relatively low degree of redistribution observed in modern democracies.Fil: Cruces, Guillermo Antonio. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas. Centro de Estudios Distributivos Laborales y Sociales; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; ArgentinaFil: Perez Truglia, Ricardo Nicolas. Harvard University; Estados UnidosFil: Tetaz, Martin Alberto. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas. Centro de Estudios Distributivos Laborales y Sociales; ArgentinaInstitute for the Study of Labor2011-05info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_6501info:ar-repo/semantics/articuloapplication/pdfapplication/pdfhttp://hdl.handle.net/11336/102500Cruces, Guillermo Antonio; Perez Truglia, Ricardo Nicolas; Tetaz, Martin Alberto; Biased Perceptions of Income Distribution and Preferences for Redistribution: Evidence from a Survey Experiment; Institute for the Study of Labor; IZA; 5699; 5-2011; 1-370317-8471CONICET DigitalCONICETenginfo:eu-repo/semantics/altIdentifier/url/http://www.iza.org/en/webcontent/publications/papers/viewAbstract?dp_id=5699info:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by-nc-sa/2.5/ar/reponame:CONICET Digital (CONICET)instname:Consejo Nacional de Investigaciones Científicas y Técnicas2025-10-15T15:15:16Zoai:ri.conicet.gov.ar:11336/102500instacron:CONICETInstitucionalhttp://ri.conicet.gov.ar/Organismo científico-tecnológicoNo correspondehttp://ri.conicet.gov.ar/oai/requestdasensio@conicet.gov.ar; lcarlino@conicet.gov.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:34982025-10-15 15:15:17.216CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicasfalse
dc.title.none.fl_str_mv Biased Perceptions of Income Distribution and Preferences for Redistribution: Evidence from a Survey Experiment
title Biased Perceptions of Income Distribution and Preferences for Redistribution: Evidence from a Survey Experiment
spellingShingle Biased Perceptions of Income Distribution and Preferences for Redistribution: Evidence from a Survey Experiment
Cruces, Guillermo Antonio
Perceptions of income distribution
Preferences for redistribution
title_short Biased Perceptions of Income Distribution and Preferences for Redistribution: Evidence from a Survey Experiment
title_full Biased Perceptions of Income Distribution and Preferences for Redistribution: Evidence from a Survey Experiment
title_fullStr Biased Perceptions of Income Distribution and Preferences for Redistribution: Evidence from a Survey Experiment
title_full_unstemmed Biased Perceptions of Income Distribution and Preferences for Redistribution: Evidence from a Survey Experiment
title_sort Biased Perceptions of Income Distribution and Preferences for Redistribution: Evidence from a Survey Experiment
dc.creator.none.fl_str_mv Cruces, Guillermo Antonio
Perez Truglia, Ricardo Nicolas
Tetaz, Martin Alberto
author Cruces, Guillermo Antonio
author_facet Cruces, Guillermo Antonio
Perez Truglia, Ricardo Nicolas
Tetaz, Martin Alberto
author_role author
author2 Perez Truglia, Ricardo Nicolas
Tetaz, Martin Alberto
author2_role author
author
dc.subject.none.fl_str_mv Perceptions of income distribution
Preferences for redistribution
topic Perceptions of income distribution
Preferences for redistribution
purl_subject.fl_str_mv https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
dc.description.none.fl_txt_mv Individual perceptions of income distribution play a vital role in political economy and public finance models, yet there is little evidence regarding their origins or accuracy. This study examines how individuals form these perceptions and posits that systematic biases arise from the extrapolation of information extracted from reference groups. A tailored household survey provides original evidence on the significant biases in individuals’ evaluations of their own relative position in the distribution. Furthermore, the data supports the hypothesis that the selection process into the reference groups is the source of those biases. Finally, this study also assesses the practical relevance of these biases by examining their impact on attitudes towards redistributive policies. An experimental design incorporated into the survey provides consistent information on the own ranking within the income distribution to a randomly selected group of respondents. Confronting agents’ biased perceptions with this information has a significant effect on their stated preferences for redistribution. Those who had overestimated their relative position and thought of themselves relatively richer than they were demand higher levels of redistribution when informed of their true ranking. This relationship between biased perceptions and political attitudes provides an alternative explanation for the relatively low degree of redistribution observed in modern democracies.
Fil: Cruces, Guillermo Antonio. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas. Centro de Estudios Distributivos Laborales y Sociales; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; Argentina
Fil: Perez Truglia, Ricardo Nicolas. Harvard University; Estados Unidos
Fil: Tetaz, Martin Alberto. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas. Centro de Estudios Distributivos Laborales y Sociales; Argentina
description Individual perceptions of income distribution play a vital role in political economy and public finance models, yet there is little evidence regarding their origins or accuracy. This study examines how individuals form these perceptions and posits that systematic biases arise from the extrapolation of information extracted from reference groups. A tailored household survey provides original evidence on the significant biases in individuals’ evaluations of their own relative position in the distribution. Furthermore, the data supports the hypothesis that the selection process into the reference groups is the source of those biases. Finally, this study also assesses the practical relevance of these biases by examining their impact on attitudes towards redistributive policies. An experimental design incorporated into the survey provides consistent information on the own ranking within the income distribution to a randomly selected group of respondents. Confronting agents’ biased perceptions with this information has a significant effect on their stated preferences for redistribution. Those who had overestimated their relative position and thought of themselves relatively richer than they were demand higher levels of redistribution when informed of their true ranking. This relationship between biased perceptions and political attitudes provides an alternative explanation for the relatively low degree of redistribution observed in modern democracies.
publishDate 2011
dc.date.none.fl_str_mv 2011-05
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
http://purl.org/coar/resource_type/c_6501
info:ar-repo/semantics/articulo
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/11336/102500
Cruces, Guillermo Antonio; Perez Truglia, Ricardo Nicolas; Tetaz, Martin Alberto; Biased Perceptions of Income Distribution and Preferences for Redistribution: Evidence from a Survey Experiment; Institute for the Study of Labor; IZA; 5699; 5-2011; 1-37
0317-8471
CONICET Digital
CONICET
url http://hdl.handle.net/11336/102500
identifier_str_mv Cruces, Guillermo Antonio; Perez Truglia, Ricardo Nicolas; Tetaz, Martin Alberto; Biased Perceptions of Income Distribution and Preferences for Redistribution: Evidence from a Survey Experiment; Institute for the Study of Labor; IZA; 5699; 5-2011; 1-37
0317-8471
CONICET Digital
CONICET
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/url/http://www.iza.org/en/webcontent/publications/papers/viewAbstract?dp_id=5699
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Institute for the Study of Labor
publisher.none.fl_str_mv Institute for the Study of Labor
dc.source.none.fl_str_mv reponame:CONICET Digital (CONICET)
instname:Consejo Nacional de Investigaciones Científicas y Técnicas
reponame_str CONICET Digital (CONICET)
collection CONICET Digital (CONICET)
instname_str Consejo Nacional de Investigaciones Científicas y Técnicas
repository.name.fl_str_mv CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicas
repository.mail.fl_str_mv dasensio@conicet.gov.ar; lcarlino@conicet.gov.ar
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score 13.22299

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