How is Economic Inequality and the Support for Income Redistribution Linked?: A Multilevel Analysis of OECD countries

Abstract

This thesis presents an investigation of what shapes the support for redistribution in OECD countries, in a rational choice perspective. Employing an understanding of the effect of economic inequality, first provided by Meltzer and Richard (1981) in "A Rational Theory of the Size of Government", it is expected that there is a positive effect of rising economic inequality on the support for income redistribution. The notion of economic inequality as a predictor for the support of redistribution is somewhat reaffirmed in this thesis, as is rational choice as a relevant predictor in the formation of public opinion on an economic issue such as this. Other possible predictors based on the national setting and context receives less support. Pre- and post-transfer economic inequality-measures are tested as alternative predictors for the support of redistribution, but only the pre-transfer version of it demonstrates a significant effect.