The lab experiment seeks to depict the causal impact of levels of inequality and the source of inequality on preferences for redistribution. It will isolate the role of self-interest and fairness considerations. I will differentiate between brute luck and unjust luck, testing whether inequalities generated by a violation of moral values generate greater support for redistribution than those generated by pure luck.
Participants will be asked to choose a preferred tax rate under different circumstances. We will manipulate participants’ initial endowment, the level of inequality, and the source of this inequality. The source of inequality will have three conditions: luck (a draft), skill (a general knowledge quiz), and unjust circumstances (family background).
I expect to find that both self-interest and fairness considerations play an important role. I forecast higher taxes in unjust conditions treatments and lower on the merit treatment. Similarly, I expect higher redistribution on the high inequality treatment.
