Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/67227
Authors: 
Siedler, Thomas
Sonnenberg, Bettina
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper Series, Forschungsinstitut zur Zukunft der Arbeit 6981
Abstract: 
This paper analyzes the extent to which intergenerational upward and downward mobility in earnings are related to individuals' preferences for redistribution. A novel survey question from the German Socio-Economic Panel Study - whether the taxes paid by unskilled workers are too high, adequate or too low - are used to elicit attitudes toward redistribution. Intergenerational mobility with regard to long-term earnings is measured using a rich panel data spanning an observation window of 22 years. The results reveal that intergenerational mobility is significantly related to preferences for redistribution. The empirical results yield strong and robust support for Piketty's (1995) rational-learning theory: individuals who experience upward (downward) intergenerational mobility are less (more) likely to favor redistribution taxation policies.
Subjects: 
preferences for redistribution
intergenerational mobility
long-run earnings
panel data
JEL: 
J62
H23
Document Type: 
Working Paper

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