Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272027 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10383
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We examine how people redistribute income when there is uncertainty about the role luck plays in determining opportunities and outcomes. We elicit redistribution decisions from a U.S.-representative sample who observe worker outcomes and whether luck magnified workers' effort ("lucky opportunities") or determined workers' income directly ("lucky outcomes"). We find that participants redistribute less and are less reactive to changes in the importance of luck in environments with lucky opportunities. Our findings have implications for models that seek to understand and predict redistribution attitudes, and help to explain the gap between lab evidence on support for redistribution and U.S. inequality trends.
Subjects: 
inequality of opportunity
fairness
luck
perceptions
JEL: 
C91
D63
Document Type: 
Working Paper
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