To save content items to your account,
please confirm that you agree to abide by our usage policies.
If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account.
Find out more about saving content to .
To save content items to your Kindle, first ensure no-reply@cambridge.org
is added to your Approved Personal Document E-mail List under your Personal Document Settings
on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part
of your Kindle email address below.
Find out more about saving to your Kindle.
Note you can select to save to either the @free.kindle.com or @kindle.com variations.
‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi.
‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
This foundational chapter asks a counter-intuitive question: Must individuals pay taxes somewhere? Can taxpayers be blamed for accepting offers from sovereign states to reduce or even wipe out their personal tax burden? And should anyone be to blame, given the intrinsic and often confirmed value of fiscal autonomy as a central feature of statehood? It is found that – as long as there is no global tax organisation providing global public goods or global redistribution and as long as no state (neither the state of origin nor the state of destination) has a clear prerogative and obligation to tax those individuals – individuals are not morally obliged to submit to meaningful taxation in ‘some’ state.
Remote work in Korea rapidly accelerated mainly with digitalization and covid-19, posing challenging issues for traditional labor law in this country. The practice of long working hours, and the crisis of the country’s low birth rate and aging population demand fundamental changes of working style. With the development of information and communication technology, traditional ways of direct command and supervision by employers seem to be reduced, while the discretion of workers expanded. However, technologies themselves also make possible more detailed direction by employers - even by the contractors of the employers. The character of the employment contract as a mutual contract presupposes fair distribution of obligation and responsibility. Changing situations surrounding working conditions such as remote work may encourage the re-distribution of responsibility. This chapter explores the impact of remote work on the employers’ responsibility from the standpoint of the response by Korean regulation and policies.
Having long shied away from proactively politicizing issues of European integration, the past crisis decade has put generally pro‐European mainstream parties under pressure to spell out more clearly which kind of Europe they support. We distinguish two such fundamental ideas of Europe: the redistributive polity, organizing transnational solidarity and the regulatory polity, strengthening national self‐reliance. Both notions are integrationist, but they come with distinct policy implications. What determines mainstream party support for either of these polity ideas? We investigate this question on data provided by the ‘EUandI’ voting advice application, which contains party positions on core issues of integration for all EU member states for the four European Parliament elections between 2009 and 2024. Mainstream party support for redistribution, we find, is generally driven by their ideological placement on the economic and cultural dimension. While progressive and left parties tend towards EU‐level redistribution, conservative and right parties are wedded to the idea of a regulatory European polity. This general dynamic, however, interacts with parties’ domestic considerations, that is, the public salience of an issue and a country's net‐payer status in the EU. We further find that the effect of mainstream parties’ ideological positioning differs across policy domains. While cultural and economic positions drive support for redistribution in fiscal and taxation policy to a nearly equal extent, support for redistribution in migration policy is driven by cultural factors alone, while in matters of security and defence right mainstream parties are more supportive of European solidarity than parties of the mainstream left. Our analysis demonstrates that mainstream parties now compete visibly over EU‐level redistribution, but that their stances on transnational solidarity differ depending on the domestic situation and the policy domain in question.
How do people perceive the utility of redistribution? Support for redistribution is commonly understood as being determined by self‐interest in a way that is monotonically proportional to expected net transfers. However, this would imply that average support for redistribution is static and unaffected by changes in the distribution of incomes. This study addresses this incongruence by integrating concepts from the literature on redistribution preferences, namely the diminishing marginal utility of income, inequity aversion and loss aversion. These concepts are formalized by making two distinctions regarding redistribution: absolute versus relative utility and gains versus losses. An analysis of the European/World Values Survey suggests that the preferences of the poor are determined by absolute gains, while the preferences of the rich are determined by relative losses. In other words, the poor care about how much they gain from redistribution, while the rich care about the share of their income that they lose from it. The findings have important implications for the relationships among public opinion, economic development and income inequality.
Seminal models in political economy imply that rising economic inequality should lead to growing public demand for redistribution. Yet, existing empirical evidence on this link is both limited and inconclusive – and scholars regularly doubt it exists at all. In this research note, we turn to data from the International Social Survey Programme's (ISSP) Social Inequality surveys, now spanning the period from 1987 to 2019, to reassess the effect of rising inequality on support for redistribution. Covering a longer time series than previous studies, we obtain robust evidence that when income inequality rises in a country, public support for income redistribution tends to go up. Examining the reaction across income groups to adjudicate between different models of how rising inequality matters in a second step, we find that rising inequality increases support for redistribution within all income groups, with a marginally stronger effect among the well‐off. Our results imply that insufficient policy responses to rising inequality may be less about absent demand and more about a failure to turn demand into policy, and that scholars should devote more attention to the latter.
Increasing attention is placed to redistributive attitudes, especially in the light of growing inequalities throughout the world. From Aristotle to Marx, the discipline classically shares a simple, albeit powerful assumption: individuals are mainly (or even only) motivated by their own self-interest. However, it is also assumed that alternative motivations may emerge as soon as the context allows this to happen. This article tests the impact of economic well-being at the societal level. Two main hypotheses are tested. First, the so-called ‘governmental protection hypothesis’, according to which support for redistribution declines at times of higher levels of national affluence. Second, the ‘declining self-interest hypothesis’, whereby national prosperity is expected to mitigate the income-based polarisation of redistributive preferences. While empirical evidence confirms the former, but not the latter, it also opens up a window of opportunity to develop an alternative theoretical explanation of attitude formation rooted in the social psychological literature.
This article offers a new theoretical explanation of the relationship between religion and the demand for redistribution. Previous literature shows that religious individuals are less likely to favour redistribution either because (a) religion provides a substitute for state welfare provision, or (b) it adds a salient moral dimension to an individual's calculus which induces them to act contrary to their economic interests. In this article, it is argued that the effect of religion on an individual's redistributive preferences is best explained by their partisanship, via a process of partisan motivated reasoning. In contexts where parties are able to combine religion with pro‐redistribution policies, religious individuals are more likely to favour redistribution as doing so reinforces their partisan identity. In advanced democracies, religious individuals are more likely to be supporters of centre‐right parties that oppose redistribution. However, in Central and Eastern Europe (CEE) the historical and political context leads to the opposite expectation. The nature of party competition in CEE has seen nationalist populist parties adopt policy platforms that combine religion and leftist economic programmes. They are able to credibly combine these two positions due to the way in which religion and the welfare state became linked to conceptions of the nation during the inter‐war state‐building years. Using data from 2002–2014, the study shows that religiosity is associated with pro‐redistribution attitudes in CEE. Furthermore, religious supporters of nationalist populist parties are more likely to favour redistribution than religious supporters of other parties. The results of this research add greater nuance to our understanding of the relationship between religiosity and economic preferences.
This study provides a novel contribution to the democracy–inequality literature by presenting the belief in democratic redistribution (the view that redistribution is an essential characteristic of democracy) as a conditioning factor. Democracy is expected to reduce inequality when people perceive redistribution as an essential characteristic of it, yet initial analysis shows contrasting results depending on the operationalisation of the indicator. Subsequent findings show, perhaps surprisingly, that democracy is only correlated with lower inequality when more people regard elections and liberties, instead of redistribution, as the essential characteristics of democracy. Democracy is associated with higher inequality when a larger share of the population considers redistribution to be essential to it. It is suggested that in response to the utilitarian view of democracy, authoritarian leaders can gain legitimacy by reducing inequality, whereas elected leaders in a democracy can hold power with little action on redistribution.
This article addresses the virtues of gold open access (OA) from the perspective of its impact on social science scholarly associations and their members. OA has clear and obvious virtues, including redistribution downward and outward of research findings. But it also has the potential for upward redistribution or narrowing of the realm of publication, which this author finds troubling. A central question is who will cover article processing charges. The article identifies five potential sources of the necessary funds or ways to reduce the funds that are necessary, and discusses problems with each in terms of likely gainers and losers. It also identifies two potential substantive concerns about the kinds of social science scholarship most amenable to OA. It concludes by observing that, as is often the case, an apparently narrow technological innovation opens large issues – organizationally, substantively, and even morally.
Explanations of different patterns of preferences for redistribution either highlight the role of the institutional framework in a country or highlight the importance of self‐interest and rational expectations. The study introduces a unified approach to explain differences in preferences for redistributive measures for the case of intergenerational monetary transfers for families and children. Both explanatory approaches are integrated into the action‐based Model of Frame Selection that incorporates normative motives and economic self‐interest into the process of decision making. Using a large sample that deals with questions on the approval of public policies for families and accounts for the normative importance of children and family life in Germany, evidence is provided that both approaches are valid in explaining preferences for government transfers.
This chapter examines Xi Jinping’s common prosperity program from a political economy perspective. Rather than primarily addressing income inequality among households, the program targets an imbalance between private capital and state power. The author argues that common prosperity is used as a tool to curtail excessive private sector influence and reassert the state’s control in the economy. Despite official statistics showing improvements in income distribution and labor share, the program pursues radical regulatory crackdowns on key private industries such as education, gaming, and tech. These measures, while intended to redistribute power and ensure political stability, risk undermining entrepreneurial incentives and aggravating long-term economic slowdown. By rebalancing the roles of the state, capital, and households, the program represents a significant departure from previous market-oriented reforms. Its political implications, including coerced corporate donations and adjustments in tax policies, illustrate a broader strategy to recalibrate the distribution of economic power in China.
Political and economic elites often warn that taxes on the rich impair economic growth. Although such warnings have a long tradition in elite discourse, what the public believes about the effects of progressive taxation remains surprisingly understudied. This omission limits our understanding of a basic democratic mechanism, the congruence of elite and public opinion. To close this gap, we employ a conjoint experiment during the 2021 German national election on a representative quota sample. Participants compare policy packages that entail changes in income, inheritance, and corporate taxes and evaluate their impact on equality and growth. We find no evidence that the public believes that progressive taxes promote equality at the expense of growth. Instead, participants believe that progressive taxes are doubly beneficial, promoting both outcomes. Furthermore, such beliefs do not vary by ideology or economic status. Our findings suggest a more consensual view of progressive taxation that emphasizes positive synergies between economic growth and greater equality.
While the idea of predistribution is gaining traction, it may seem inherently elusive. The source of confusion is the prefix ‘pre’, which denotes priority or prevention. This paper proposes a new functional definition of predistribution that is practically useful and unifies different predistributive policies. Through defending predistribution as policies of ex ante distribution, I offer a philosophically robust notion of priority (‘procedural priority’) and different functions of prevention that help make sense of predistribution. I also develop typologies of different predistributive policies and explore justificatory grounds and strengths of predistribution. I emphasize instrumental reasons for supporting predistribution.
The power that the ruling class has over institutions of authority gives them the ability to use that power to transfer income and wealth from some to others. It enables them to transfer control over resources from the masses to themselves and to transfer resources among the masses to preserve their positions in the political hierarchy by buying support. The ability of the political class to redistribute is the direct result of their control over institutions of authority. Despite the coercive institutions that enforce redistribution, citizens generally view it as a legitimate function of government, and those citizen views are supported by academic arguments that it enhances social welfare. The chapter analyzes this interaction between citizen opinion and academic support for government redistribution.
Market institutions, including institutions in the political marketplace, are created to facilitate the ability of individuals to exchange for their mutual benefit. This chapter begins with an analysis of markets for goods and services, with the idea that those same principles of market exchange carry over into political markets. A general equilibrium framework is used to depict the outcome of exchange under the assumption that there are no transaction costs to impede mutually advantageous exchanges. That model is institution-free, so the chapter continues to analyze what institutions would be necessary to produce that general equilibrium outcome in an environment in which there are transaction costs. The chapter notes that institutions have three economic functions: lowering transaction costs, enforcing rights and contracts, and redistribution. The chapter analyzes those first two functions, deferring a discussion of redistribution until Chapter 8.
Existing research documents a log-linear relationship between income and subjective well-being, known as the income–well-being gradient. Using data from millions of Americans, mainly from the Gallup Daily Poll, we find significant racial differences in this gradient. Whites exhibit a steeper income–well-being gradient than Blacks, Hispanics, and Asians. These gradient differences remain after accounting for demographic, socioeconomic, neighborhood, and relative income factors. Additional analyses reveal similar racial heterogeneity in (i) other well-being measures, (ii) expected future well-being, and (iii) the age–well-being relationship. These findings underscore the important role of race in the well-being relationships and the need to better understand the dimensions of heterogeneity in the income–well-being gradient.
This chapter explains why inframarginal analysis should be used to evaluate whether to enforce consumer boilerplate provisions, and then applies this approach to show that the use of pro-consumer boilerplate terms should be mandatory. Inframarginal analysis looks at how the law can allocate inframarginal resources in ways that are fairer and more efficient than unregulated outcomes. Two policy considerations are paramount when carrying out this analysis: 1) devising ways to distribute resources equitably, and 2) minimizing wasteful competition. The impact of consumer boilerplate is largely inframarginal, so inframarginal analysis is the correct way to evaluate whether to enforce these provisions. In carrying out this analysis, a graph-based approach is helpful in showing why equitable considerations point toward preferring pro-consumer terms over pro-seller terms and why wasteful competition considerations point toward making the use of these pro-consumer terms mandatory. The usefulness of this analysis is further demonstrated by applying the findings here to the more specific question of whether to enforce choice-of-forum provisions in consumer contracts.
Since the Reagan era, American economic policy has amounted to self-colonization. Democratic majorities have consistently supported legal regimes that have enabled corporations to extract the lion’s share of the gains from trade from the public. For example, they have supported a corporate law regime that denies the public democratic control over the behavior of corporations and instead gives dictatorial powers to shareholders and managers. The Internet has made it even easier for firms to extract surpluses from consumers through surveillance and algorithmic pricing. One small contribution toward a project of decolonizing the public would be for consumers to obtain a property right in their personal information. This would allow them to claw back some of the surpluses that technology has taken from them.
Land is a major generator of gains from trade because it is fixed in quantity and arises naturally, resulting in low costs for sellers and high demand from buyers. The fixed quantity also allows policymakers to tailor prices or taxes to inframarginal units. But the current mode of redistributing the surpluses generated by land sales in America – the local property tax – has important drawbacks. These include the need for property value assessments, the fact that some homeowners lack the cash income required to pay the tax even when the assessment is accurate, and the fact that local administration means there is little redistribution from rich communities to poor ones. Taxing imputed rents as income at the federal level would address these problems. Imputed rent is the rent that a homeowner pays to himself for the right to live in the house. It is economically equivalent to a home’s value because home values are determined by the rents they command. Taxing them as federal income does not require home value assessments (local rental data suffice), ensures that tax rates vary with income, and leverages the mildly progressive federal income tax rate structure to redistribute wealth.
This paper investigates the effect of taxation of polluting products and redistribution on pollution, income and welfare inequalities. We consider a two-sector Ramsey model with a green and a polluting good, two types of households and a subsistence level of consumption for the polluting good. The environmental tax is always effective in reducing pollution regardless of the level of subsistence consumption. However, this level, together with the redistribution rate, matters at the individual level as it shapes the impact of the environmental policy on individual consumption and welfare. Looking at the stability properties of the economy, a high subsistence level of polluting consumption leads to instability or indeterminacy of the steady state, while the environmental externality reduces the scope for indeterminacy. Increasing the tax rate and redistributing more to the worker affect the occurrence of indeterminacy and instability. Considering the subsistence level of consumption and the level of redistribution among households are of importance as it determines the effects of environmental tax policy in the long term and the stability of the economy in the short term.