Rising inequality and public support for redistribution

Abstract

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.