[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/39434.html
   My bibliography  Save this paper

Norm for redistribution, social capital, and perceived tax burden: comparison between high- and low-income households

Author

Listed:
  • Yamamura, Eiji
Abstract
This paper explores how a perceived tax burden is influenced by the degree that neighbors prefer income redistribution. Further, this paper investigates how the influence of neighbors is affected by the degree of interaction between neighbors. For these purposes, individual-level data and place of residence data were combined. After controlling for individual characteristics, I obtained the following key findings: people are more likely to perceive the amount of tax as low when neighbors are more likely to support redistribution policies. Further, this neighbor effect increases when community participation rates are high. This tendency is clearly observed in high-income groups but not in low-income groups. This implies that the norm for redistribution leads rich people to consider the tax burden as low. Further, the effect of the norm increases when there is a greater accumulation of social capital within a residential area. That is, one’s perceived tax burden is influenced by psychological externalities.

Suggested Citation

  • Yamamura, Eiji, 2012. "Norm for redistribution, social capital, and perceived tax burden: comparison between high- and low-income households," MPRA Paper 39434, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:39434
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/39434/1/MPRA_paper_39434.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Becker, Gary S, 1974. "A Theory of Social Interactions," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1063-1093, Nov.-Dec..
    2. Balestrino, Alessandro, 2010. "Tax avoidance and the endogenous formation of social norms," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(5), pages 601-609, October.
    3. repec:bla:jecsur:v:14:y:2000:i:5:p:629-53 is not listed on IDEAS
    4. Yann Algan & Pierre Cahuc & Marc Sangnier, 2011. "Efficient and Inefficient Welfare States," SciencePo Working papers Main hal-03460495, HAL.
    5. Corneo, Giacomo & Gruner, Hans Peter, 2002. "Individual preferences for political redistribution," Journal of Public Economics, Elsevier, vol. 83(1), pages 83-107, January.
    6. Alberto Alesina & George-Marios Angeletos, 2005. "Fairness and Redistribution," American Economic Review, American Economic Association, vol. 95(4), pages 960-980, September.
    7. Kelly Foley, 2012. "Can neighbourhoods change the decisions of youth on the margins of university participation?," Canadian Journal of Economics, Canadian Economics Association, vol. 45(1), pages 167-188, February.
    8. Lars P. Feld & Bruno S. Frey, 2002. "Trust breeds trust: How taxpayers are treated," Economics of Governance, Springer, vol. 3(2), pages 87-99, July.
    9. Cuccia, Andrew D. & Carnes, Gregory A., 2001. "A closer look at the relation between tax complexity and tax equity perceptions," Journal of Economic Psychology, Elsevier, vol. 22(2), pages 113-140, April.
    10. Fortin, Bernard & Lacroix, Guy & Villeval, Marie-Claire, 2007. "Tax evasion and social interactions," Journal of Public Economics, Elsevier, vol. 91(11-12), pages 2089-2112, December.
    11. Erzo F. P. Luttmer, 2005. "Neighbors as Negatives: Relative Earnings and Well-Being," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(3), pages 963-1002.
    12. James Alm & Gary H. McClelland & William D. Schulze, 1999. "Changing the Social Norm of Tax Compliance by Voting," Kyklos, Wiley Blackwell, vol. 52(2), pages 141-171, May.
    13. Rafael Gomez & Eric Santor, 2001. "Membership has its privileges: the effect of social capital and neighbourhood characteristics on the earnings of microfinance borrowers," Canadian Journal of Economics, Canadian Economics Association, vol. 34(4), pages 943-966, November.
    14. Yann Algan & Pierre Cahuc & Marc Sangnier, 2016. "Trust and the Welfare State: the Twin Peaks Curve," Economic Journal, Royal Economic Society, vol. 126(593), pages 861-883, June.
    15. Clark, Andrew E. & Oswald, Andrew J., 1996. "Satisfaction and comparison income," Journal of Public Economics, Elsevier, vol. 61(3), pages 359-381, September.
    16. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 817-868.
    17. Erzo F. P. Luttmer, 2001. "Group Loyalty and the Taste for Redistribution," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 500-528, June.
    18. Roland Iwan Luttens & Marie-Anne Valfort, 2012. "Voting for Redistribution under Desert-Sensitive Altruism," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(3), pages 881-907, September.
    19. Alberto F. Alesina & Paola Giuliano, 2009. "Preferences for Redistribution," NBER Working Papers 14825, National Bureau of Economic Research, Inc.
    20. Derin-Güre, Pinar & Uler, Neslihan, 2010. "Charitable giving under inequality aversion," Economics Letters, Elsevier, vol. 107(2), pages 208-210, May.
    21. Tyran, Jean-Robert & Sausgruber, Rupert, 2006. "A little fairness may induce a lot of redistribution in democracy," European Economic Review, Elsevier, vol. 50(2), pages 469-485, February.
    22. Rafael Gomez & Eric Santor, 2001. "Membership has its privileges: the effect of social capital and neighbourhood characteristics on the earnings of microfinance borrowers," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 34(4), pages 943-966, November.
    23. Russell S. Sobel & Gary A. Wagner, 2004. "Expressive Voting and Government Redistribution: Testing Tullock's `Charity of the Uncharitable'," Public Choice, Springer, vol. 119(1_2), pages 143-159, April.
    24. Wenzel, Michael, 2004. "An analysis of norm processes in tax compliance," Journal of Economic Psychology, Elsevier, vol. 25(2), pages 213-228, April.
    25. Alesina, Alberto & La Ferrara, Eliana, 2005. "Preferences for redistribution in the land of opportunities," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 897-931, June.
    26. Erzo F. P. Luttmer & Monica Singhal, 2011. "Culture, Context, and the Taste for Redistribution," American Economic Journal: Economic Policy, American Economic Association, vol. 3(1), pages 157-179, February.
    27. David P. Baron, 2010. "Morally Motivated Self-Regulation," American Economic Review, American Economic Association, vol. 100(4), pages 1299-1329, September.
    28. Martin Paldam, 2000. "Social Capital: One or Many? Definition and Measurement," Journal of Economic Surveys, Wiley Blackwell, vol. 14(5), pages 629-653, December.
    29. Fong, Christina, 2001. "Social preferences, self-interest, and the demand for redistribution," Journal of Public Economics, Elsevier, vol. 82(2), pages 225-246, November.
    30. Steven N. Durlauf, 2002. "On the Empirics of Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 459-479, November.
    31. Rainer, Helmut & Siedler, Thomas, 2008. "Subjective income and employment expectations and preferences for redistribution," Economics Letters, Elsevier, vol. 99(3), pages 449-453, June.
    32. Klor, Esteban F. & Shayo, Moses, 2010. "Social identity and preferences over redistribution," Journal of Public Economics, Elsevier, vol. 94(3-4), pages 269-278, April.
    33. Lars Feld & Claus Larsen, 2012. "Self-perceptions, government policies and tax compliance in Germany," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(1), pages 78-103, February.
    34. Bjornskov, Christian, 2006. "The multiple facets of social capital," European Journal of Political Economy, Elsevier, vol. 22(1), pages 22-40, March.
    35. Copeland, Cassandra & Laband, David N, 2002. "Expressiveness and Voting," Public Choice, Springer, vol. 110(3-4), pages 351-363, March.
    36. Joel Sobel, 2002. "Can We Trust Social Capital?," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 139-154, March.
    37. repec:hal:spmain:info:hdl:2441/dd7iu65nm8cmbffuv10399qpu is not listed on IDEAS
    38. Wenzel, Michael, 2005. "Misperceptions of social norms about tax compliance: From theory to intervention," Journal of Economic Psychology, Elsevier, vol. 26(6), pages 862-883, December.
    39. Gemmell, Norman & Morrissey, Oliver & Pinar, Abuzer, 2003. "Tax perceptions and the demand for public expenditure: evidence from UK micro-data," European Journal of Political Economy, Elsevier, vol. 19(4), pages 793-816, November.
    40. Galasso, Vincenzo, 2003. "Redistribution and fairness: a note," European Journal of Political Economy, Elsevier, vol. 19(4), pages 885-892, November.
    41. Ravallion, Martin & Lokshin, Michael, 2000. "Who wants to redistribute?: The tunnel effect in 1990s Russia," Journal of Public Economics, Elsevier, vol. 76(1), pages 87-104, April.
    42. Gordon, James P. P., 1989. "Individual morality and reputation costs as deterrents to tax evasion," European Economic Review, Elsevier, vol. 33(4), pages 797-805, April.
    43. Fumio Ohtake & Jun Tomioka, 2004. "Who Supports Redistribution?," The Japanese Economic Review, Japanese Economic Association, vol. 55(4), pages 333-354, December.
    44. Benno Torgler, 2003. "Tax Morale, Rule-Governed Behaviour and Trust," Constitutional Political Economy, Springer, vol. 14(2), pages 119-140, June.
    45. Andreas Bergh & Christian Bjørnskov, 2011. "Historical Trust Levels Predict the Current Size of the Welfare State," Kyklos, Wiley Blackwell, vol. 64(1), pages 1-19, February.
    46. repec:bla:kyklos:v:52:y:1999:i:2:p:141-71 is not listed on IDEAS
    47. Yamamura, Eiji, 2012. "Social capital, household income, and preferences for income redistribution," European Journal of Political Economy, Elsevier, vol. 28(4), pages 498-511.
    48. Michael Shields & Stephen Wheatley Price & Mark Wooden, 2009. "Life satisfaction and the economic and social characteristics of neighbourhoods," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(2), pages 421-443, April.
    49. Wenzel, Michael, 2005. "Motivation or rationalisation? Causal relations between ethics, norms and tax compliance," Journal of Economic Psychology, Elsevier, vol. 26(4), pages 491-508, August.
    50. Hillman, Arye L., 2010. "Expressive behavior in economics and politics," European Journal of Political Economy, Elsevier, vol. 26(4), pages 403-418, December.
    51. Hammar, Henrik & Jagers, Sverker C. & Nordblom, Katarina, 2009. "Perceived tax evasion and the importance of trust," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 238-245, March.
    52. Cullis, John & Jones, Philip & Savoia, Antonio, 2012. "Social norms and tax compliance: Framing the decision to pay tax," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(2), pages 159-168.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lorna Zischka, 2014. "Social Capital Stocks, Giving Flows and Welfare Outcomes," Economics Discussion Papers em-dp2014-04, Department of Economics, University of Reading.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eiji Yamamura, 2014. "Trust in government and its effect on preferences for income redistribution and perceived tax burden," Economics of Governance, Springer, vol. 15(1), pages 71-100, February.
    2. Yamamura, Eiji, 2012. "Social capital, household income, and preferences for income redistribution," European Journal of Political Economy, Elsevier, vol. 28(4), pages 498-511.
    3. Yamamura, Eiji, 2011. "Effect of social capital on income distribution preferences: comparison of neighborhood externality between high- and low-income households," MPRA Paper 32557, University Library of Munich, Germany.
    4. Eiji Yamamura, 2021. "Information of income position and its impact on perceived tax burden and preference for redistribution: An Internet Survey Experiment," Papers 2106.11537, arXiv.org.
    5. Eiji Yamamura, 2015. "Effects of Siblings and Birth Order on Income Redistribution Preferences: Evidence Based on Japanese General Social Survey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 121(2), pages 589-606, April.
    6. Eiji Yamamura, 2014. "Comparing the influence of conflict on the perceptions of rich and poor: testing the hypothesis of Acemoglu and Robinson," ISER Discussion Paper 0911, Institute of Social and Economic Research, Osaka University.
    7. Yamamura, Eiji, 2012. "Effects of siblings and birth order on income redistribution preferences," MPRA Paper 38658, University Library of Munich, Germany.
    8. Cojocaru, Alexandru, 2014. "Prospects of upward mobility and preferences for redistribution: Evidence from the Life in Transition Survey," European Journal of Political Economy, Elsevier, vol. 34(C), pages 300-314.
    9. de Bresser, Jochem & Knoef, Marike, 2021. "Preferences for Income Redistribution : A New Survey Item and Experimental Evidence," Other publications TiSEM 246972d6-0fdb-4243-9e34-2, Tilburg University, School of Economics and Management.
    10. Clark, Andrew E. & D'Ambrosio, Conchita, 2014. "Attitudes to Income Inequality: Experimental and Survey Evidence," IZA Discussion Papers 8136, Institute of Labor Economics (IZA).
    11. de Bresser, Jochem & Knoef, Marike, 2022. "Eliciting preferences for income redistribution: A new survey item," Journal of Public Economics, Elsevier, vol. 214(C).
    12. Corneo, Giacomo & Neher, Frank, 2015. "Democratic redistribution and rule of the majority," European Journal of Political Economy, Elsevier, vol. 40(PA), pages 96-109.
    13. de Bresser, Jochem & Knoef, Marike, 2021. "Preferences for Income Redistribution : A New Survey Item and Experimental Evidence," Discussion Paper 2021-035, Tilburg University, Center for Economic Research.
    14. Andreea-Oana Iacobuță & Mihaela Ifrim, 2020. "Welfare Mentality as a Challenge to European Sustainable Development. What Role for Youth Inclusion and Institutions?," Sustainability, MDPI, vol. 12(9), pages 1-25, April.
    15. Sabatini, Fabio & Sarracino, Francesco & Yamamura, Eiji, 2014. "Social norms on rent seeking and preferences for redistribution," EconStor Preprints 98662, ZBW - Leibniz Information Centre for Economics.
    16. Neher, Frank, 2012. "Preferences for Redistribution around the World," Working Papers 26/2012, Universidade Portucalense, Centro de Investigação em Gestão e Economia (CIGE).
    17. Roy Cerqueti & Fabio Sabatini & Marco Ventura, 2019. "Civic capital and support for the welfare state," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 53(2), pages 313-336, August.
    18. Ilpo Kauppinen & Panu Poutvaara, 2019. "Preferences for Redistribution and International Migration," ifo Working Paper Series 283, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    19. Neher, Frank, 2012. "Preferences for redistribution around the world," Discussion Papers 2012/2, Free University Berlin, School of Business & Economics.
    20. Eiji Yamamura, 2017. "Effect of Historical Educational Level on Perceived Inequality, Preference for Redistribution and Progressive Taxation," International Economic Journal, Taylor & Francis Journals, vol. 31(3), pages 355-369, July.

    More about this item

    Keywords

    Perceived tax; Norm; Redistribution; Social capital; Externality;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D30 - Microeconomics - - Distribution - - - General
    • H29 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:39434. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.