Preferences for Income Redistribution in Unequal Contexts: Changes in Latin America Between 2008 and 2018

Abstract

In a developing and highly unequal region like Latin America, it is crucial to understand the determinants that affect people's support for redistribution of resources from the state. A series of theories focused on self-interest have continuously established a negative link between people's income and their support for the reduction of inequalities through redistribution. Despite this, the evidence is scarce and sometimes contradictory while its study in Latin America is almost non-existent. Using data from the LAPOP Survey between 2008 and 2018, a longitudinal dimension is considered for the first time in the measurement of Latin American redistributive preferences, using hybrid multilevel regression models. In contrast to the evidence from studies conducted in other regions, the results reveal that in Latin America it is not possible to detect a clear association between income and redistributive preferences at specific times, but it is possible when changes occur in countries' levels of inequality and economic development. Likewise, other elements that consistently affect preferences are evident, such as educational level, political ideology, and confidence in the political system. In light of this evidence, comparisons are made with previous research findings in industrialized countries, challenging rationalist theories of justice and solidarity.

How do people understand inequality in Chile? A study through attitude network analysis

“…However, Latin America has placed itself as a scenario that questions the applicability and universality of the mainstream self-interest approach (Dion & Birchfield, 2010). Indeed, it has been found that unlike in developed countries (Finseraas, 2009;Gijsberts, 2002;Schmidt-Catran, 2016), in Latin America, attitudes toward inequality are not primarily determined by the objective socioeconomic position of individuals (Berens, 2015;Bucca, 2016;Franetovic & Castillo, 2021). Scholars have highlighted the relevance of social affinity and political attitudes in peoples' attitudes toward inequality across the region.…”

“…For instance, Borges (2022) showed that the cultural diversity of Latin American countries decreases individuals' agreement with redistribution. In addition, Franetovic and Castillo (2021) evidenced that income-based differences in support for redistribution emerge only in certain scenarios of inequality and economic development, while trust in the political system stands out as a more important determinant of it. This behavior within the region adds to a broad literature that destabilizes the direct link between social positions and attitudes toward inequality, emphasizing the importance of cultural norms and normative values (Etzioni, 1988;Feldman & Zaller, 1992), as well as the availability of distributional information in social environments (Dawtry et al, 2015;Lindh et al, 2021;Mijs, 2018).…”

“…Interestingly, compared to other countries, Chile has one of the lowest rates of judgments of income distribution as fair (Moya et al, 2023), which differ by income and occupation but not so much by educational level (Mac-Clure et al, 2019). The belief in public redistribution in Chile is among the highest in Latin America (Franetovic & Castillo, 2021) and are not explained by people's political party preferences (Castillo et al, 2013). In addition, most people critically judge the tax system (Atria, 2022), and the perception of tax regressivity and the agreement with tax progressivity are positively associated with the perception of inequality and the belief in public redistribution (Castillo & Olivos, 2014).…”