The effect of macroeconomic and social conditions on the demand for redistribution: A pseudo panel approach

• Published in: Journal of European social policy Vol. 23; no. 2; pp. 149 - 163
• Main Author: Jaeger, Mads Meier
• Format: Journal Article
• Language: English
• Published: London, England SAGE Publications 01.05.2013; Sage Publications Ltd
• Subjects: Appropriations and expenditures; Crosscultural Differences; Economic Development; Economic growth; Economic models; Equality; Europe; Expectations; Groups; Income distribution; Income Inequality; Income redistribution; Longitudinal studies; Macroeconomics; Methodological approaches; Panel Data; Public opinion; Redistribution; Social Conditions; Social conditions & trends; Social costs; Sociodemographics; Surveys; Unemployment; Unemployment levels; fixed effect model; demand for redistribution; public opinion; comparative welfare state research; pseudo-panel data
• ISSN: 0958-9287; 1461-7269
• DOI: 10.1177/0958928712471225

This paper analyses the effect of macroeconomic and social conditions on the demand for redistribution. Using a synthetic cohort design to generate panel data at the level of socio-demographic groups, analysis of fives waves of data from the European Social Survey (2002–2010) shows that differences across countries in macroeconomic and social conditions have an effect on the demand for redistribution. Consistent with theoretical expectations, economic growth generates a lower demand for redistribution, while higher income inequality generates a higher demand. By contrast, differences across countries in unemployment levels and social expenditure are unrelated to the demand for redistribution. The analysis also suggests that empirical results depend to a considerable extent on the assumptions underlying different methodological approaches.