@misc{BjornskovDreherFischeretal., author = {Bj{\o}rnskov, Christian and Dreher, Axel and Fischer, Justina and Schnellenbach, Jan and Gehring, Kai}, title = {Inequality and Happiness: When Perceived Social Mobility and Economic Reality Do Not Match}, series = {Journal of Economic Behavior \& Organization}, volume = {91}, journal = {Journal of Economic Behavior \& Organization}, issn = {0167-2681}, doi = {10.1016/j.jebo.2013.03.017}, pages = {75 -- 92}, abstract = {We argue that perceived fairness of the income generation process affects the association between income inequality and subjective well-being, and that there are systematic differences in this regard between countries that are characterized by a high or, respectively, low level of actual fairness. Using a simple model of individual labor market participation under uncertainty, we predict that high levels of perceived fairness cause higher levels of individual welfare, and lower support for income redistribution. Income inequality is predicted to have a more favorable impact on subjective well-being for individuals with high fairness perceptions. This relationship is predicted to be stronger in societies that are characterized by low actual fairness. Using data on subjective well-being and a broad set of fairness measures from a pseudo micro-panel from the WVS over the 1990-2008 period, we find strong support for the negative (positive) association between fairness perceptions and the demand for more equal incomes (subjective well-being). We also find strong empirical support for the predicted differences in individual tolerance for income inequality, and the predicted influence of actual fairness.}, language = {en} } @misc{FeldSchnellenbach, author = {Feld, Lars P. and Schnellenbach, Jan}, title = {Political Institutions and Income (Re-)Distribution: Evidence from Developed Economies}, series = {Public Choice}, volume = {159}, journal = {Public Choice}, number = {3}, issn = {1573-7101}, doi = {10.1007/s11127-013-0116-4}, pages = {435 -- 455}, abstract = {We discuss the effect of formal political institutions (electoral systems, fiscal decentralization, presidential and parliamentary regimes) on the extent and direction of income (re-)distribution. Empirical evidence is presented for a large sample of 70 economies and a panel of 13 OECD countries between 1981 and 1998. The evidence indicates that presidential regimes are associated with a less equal distribution of disposable incomes, while electoral systems have no significant effects. Fiscal competition is associated with less income redistribution and a less equal distribution of disposable incomes, but also with a more equal primary income distribution. Our evidence also is in line with earlier empirical contributions that find a positive relationship between trade openness and equality in primary and disposable incomes, as well as the overall redistributive effort.}, language = {en} }