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http://hdl.handle.net/10419/18269
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| Title: | | Are People Inequality Averse, and Do They Prefer Redistribution by the State? Evidence From German Longitudinal Data on Life Satisfaction  |
| Authors: | | Schwarze, Johannes Härpfer, Marco |
| Issue Date: | | 2002 |
| Series/Report no.: | | DIW-Diskussionspapiere 285 |
| Abstract: | | We link life-satisfaction data to inequality of the pre-government income distribution at the regional level, to estimate the degree of inequality aversion. In addition, we investigate whether a reduction in inequality by the state increases individual well-being. We find that Germans are inequality averse over the entire income distribution. However, inequality reduction by the state does not increase well-being. On the contrary, inequality reduction places something of an excess burden on middle-income earners. The paper uses data from the German Socio-economic Panel Study (GSOEP) from 1985 to 1998. |
| Subjects: | | Inequality aversion redistribution life satisfaction panel data |
| JEL: | | D31 D63 I31 C23 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des DIW DIW-Diskussionspapiere
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