Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20210
Authors: 
Schwarze, Johannes
Härpfer, Marco
Year of Publication: 
2003
Series/Report no.: 
IZA Discussion paper series 974
Abstract: 
We link life-satisfaction data to inequality of the pre- and post-government income distribution at the regional level, to estimate the degree of inequality aversion. Three different inequality measures are used. In addition, we investigate whether a reduction in inequality by the state increases individual well-being. We find only weak evidence that Germans are inequality averse. Inequality reduction by the state does not increase wellbeing. On the contrary, inequality reduction imposes 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: 
I31
D63
D31
C23
Document Type: 
Working Paper

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