Don't tax me? Determinants of individual attitudes toward progressive taxation

This contribution empirically analyses the individual determinants of tax rate preferences. For that purpose we make use of the representative German General Social Survey (ALLBUS) that offers data on the individual attitudes toward progressive, proportional, and regressive taxation. Our theoretical considerations suggest that beyond self-interest, information, fairness considerations, economic beliefs and several other individual factors drive individual preferences for tax rate structures. Our empirical results indicate that the self-interest view does not offer the sole explanation for the heterogeneity in attitudes toward progressive taxation. Rather, we show that the choice of the favoured tax rate is also driven by fairness considerations. --tax progression,policy preferences,fairness,ALLBUS

Choosing from the Reform Menu Card: Individual Determinants of Labour Market Policy Preferences

This contribution empirically explores the drivers of labour market reform acceptance for the individual level in Germany. For that purpose we make use of the representative German General Social Survey (ALLBUS). This survey offers data to which extent individuals support benefit cuts, longer working years, cutting subsidies to declining industries, phasing out of employment programmes or a liberalisation of employment protection. Our theoretical considerations suggest that self-interest, information, fairness judgements, economic beliefs and other individual factors such as socialisation under the communist regime in the former German Democratic Republic drive individual reform preferences. Our empirical results support this notion: While we find self-interest to be an important driving force, our results show that a number of factors well beyond the narrow scope of self-interest strongly shape individual reform preferences. --labour market reform,economic beliefs,fairness preferences,ALLBUS

Individual Determinants of Social Fairness Assessments: The Case of Germany

In this contribution we study the determinants of how individuals assess the social fairness of a given income distribution. We propose an analytical framework distinguishing between potential impact factors related to the following fields: first fairness preferences, second beliefs on the sources of economic success and the functioning of democracy and third selfinterest. We test this framework on representative survey data for Germany for the years 1991, 2000 and 2004. Our results indicate that self-interest, beliefs and fairness preferences jointly shape fairness assessments. In addition, a number of personal characteristics are found to be important: Compared to their western fellow citizens, people born in GDR have a more critical view at social fairness. A particularly strong impact is related to the belief on the functioning of the democratic system. This points an important role of procedural fairness for the acceptance of a given distribution. --fairness preferences,economic beliefs,ALLBUS

Intrinsic work motivation and pension reform acceptance

Although demographic change leaves pay-as-you-go pension systems unsustainable, reforms, such as a higher pension age, are highly unpopular. This contribution looks into the role of intrinsic motivation as a driver for pension reform acceptance. Theoretical reasoning suggests that this driver should be relevant: The choice among different pension reform options (increasing pension age, increasing contributions, cutting pensions) can be analyzed within the framework of an optimal job separation decision. In this optimization, intrinsic job satisfaction matters as it decreases the subjective costs of a higher pension age. We test this key hypothesis on the basis of the German General Social Survey (ALLBUS). The results are unambiguous: In addition to factors such as age or education, the inclusion of intrinsic work motivation helps to improve our prediction of an individual's reform orientation. Our results are of importance for reform acceptance beyond the specific topic of pension reform. They point to the fact that the support for welfare state reform is also decided at the workplace. --Pension system,reforms,pension age,ALLBUS

Globalization, income distribution and voter preferences: Transmission mechanisms and reform acceptance

This thesis consists of two self-contained parts, which examine the distributional consequences of globalization and the ability to conduct market-friendly reforms from the perspective of industrialized countries. In the first part of this thesis, I focus on the role of different transmission mechanisms through which globalization should affect the distribution of incomes. Based on a panel of OECD countries covering the period between 1960 and 2010, I analyze empirically how the exposure to international trade and capital mobility affects the labor income share, wage dispersion, unemployment rate, relative supply of human capital and the net income of unemployed persons. In a second step, I test how these transmission mechanisms are related to the distribution of market and disposable incomes as well as income redistribution. The second part of this thesis deals with general attitudes of voters toward a range of policies in the fields of the labor market, social security and tax system. Whereas market-friendly reforms in these policy fields might be highly desirable in order to cope with the challenges of globalization, the ability to conduct such reforms depends crucially on the support of voters. Based on survey data, which is designed to be representative for the German population, I study empirically the individual determinants of voters’ attitudes toward selected reforms. Besides individual self-interest also fairness considerations and beliefs about the role of effort for economic success contribute to the explanation of individual reform preferences. Despite the relevance of individual beliefs for the formation of voter preferences, our understanding of the factors that explain these perceptions is still incomplete. Hence, I exploit a natural experiment on the reception of West German television broadcasts in the GDR and analyze whether television has the power to persistently affect individual beliefs on the drivers of success in life

Choosing from the reform menu card : individual determinants of labour market policy preferences

This contribution empirically explores the drivers of labour market reform acceptance for the individual level in Germany. For that purpose we make use of the representative German General Social Survey (ALLBUS). This survey offers data to which extent individuals support benefit cuts, longer working years, cutting subsidies to declining industries, phasing out of employment programmes or a liberalisation of employment protection. Our theoretical considerations suggest that self-interest, information, fairness judgements, economic beliefs and other individual factors such as socialisation under the communist regime in the former German Democratic Republic drive individual reform preferences. Our empirical results support this notion: While we find self-interest to be an important driving force, our results show that a number of factors well beyond the narrow scope of self-interest strongly shape individual reform preferences

Exposure to television and individual beliefs: evidence from a natural experiment

Does the information provided by mass media have the power to persistently affect individual beliefs about the drivers of success in life? To answer this question empirically, this contribution exploits a natural experiment on the reception of West German television in the former German Democratic Republic. After identifying the impact of Western television on individual beliefs and attitudes in the late 1980s, longitudinal data from the German Socio-Economic Panel is used to test the persistence of the television effect on individual beliefs during the 1990s. The empirical findings indicate that Western television exposure has made East Germans more inclined to believe that effort rather than luck determines success in life. Furthermore, this effect still persists several years after the German reunification

Intrinsic work motivation and pension reform acceptance

Although demographic change leaves pay-as-you-go pension systems unsustainable, reforms, such as a higher pension age, are highly unpopular. This contribution looks into the role of intrinsic motivation as a driver for pension reform acceptance. Theoretical reasoning suggests that this driver should be relevant: The choice among different pension reform options (increasing pension age, increasing contributions, cutting pensions) can be analyzed within the framework of an optimal job separation decision. In this optimization, intrinsic job satisfaction matters as it decreases the subjective costs of a higher pension age. We test this key hypothesis on the basis of the German General Social Survey (ALLBUS). The results are unambiguous: In addition to factors such as age or education, the inclusion of intrinsic work motivation helps to improve our prediction of an individual’s reform orientation. Our results are of importance for reform acceptance beyond the specific topic of pension reform. They point to the fact that the support for welfare state reform is also decided at the workplace

Individual determinants of social fairness assessments : the case of Germany

In this contribution we study the determinants of how individuals assess the social fairness of a given income distribution. We propose an analytical framework distinguishing between potential impact factors related to the following fields: first fairness preferences, second beliefs on the sources of economic success and the functioning of democracy and third selfinterest. We test this framework on representative survey data for Germany for the years 1991, 2000 and 2004. Our results indicate that self-interest, beliefs and fairness preferences jointly shape fairness assessments. In addition, a number of personal characteristics are found to be important: Compared to their western fellow citizens, people born in GDR have a more critical view at social fairness. A particularly strong impact is related to the belief on the functioning of the democratic system. This points an important role of procedural fairness for the acceptance of a given distribution

Don't tax me? : Determinants of individual attitudes toward progressive taxation

This contribution empirically analyses the individual determinants of tax rate preferences. For that purpose we make use of the representative German General Social Survey (ALLBUS) that offers data on the individual attitudes toward progressive, proportional, and regressive taxation. Our theoretical considerations suggest that beyond self-interest, information, fairness considerations, economic beliefs and several other individual factors drive individual preferences for tax rate structures. Our empirical results indicate that the self-interest view does not offer the sole explanation for the heterogeneity in attitudes toward progressive taxation. Rather, we show that the choice of the favoured tax rate is also driven by fairness considerations