Can conflict affect individuals’ preferences for income redistribution?

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Abstract

This study examines the effect of conflict on individuals’ preferences for income redistribution. To this end, I compare individuals’ preferences before and after a war between Israel and a Lebanese terror organization in 2006. Using information from both panel and repeated cross-sectional datasets, I find that residing in war-affected regions increases individuals’ support for income redistribution. An examination of several mechanisms that may elicit this finding reveals that conflict increases the importance of luck in individuals’ perceptions and rules out other channels such as changes in individuals’ risk preferences or beliefs. Placebo analyses using the years preceding the war and individuals’ preferences unrelated to violence (e.g., attitudes about the environment) reinforce my main findings.

Original languageEnglish
JournalJournal of Population Economics
DOIs
StateAccepted/In press - 2023

Bibliographical note

Funding Information:
This paper uses data from SHARE Waves 1 and 5 (DOIs: 10.6103/SHARE.w1.710, 10.6103/SHARE.w2.710, 10.6103/SHARE.w3.710, 10.6103/SHARE.w4.710, 10.6103/SHARE.w5.710, 10.6103/SHARE.w6.710, 10.6103/SHARE.w7.711, 10.6103/SHARE.w8.100, 10.6103/SHARE.w8ca.100); see Börsch-Supan et al. () for methodological details. (1) The SHARE data collection has been funded by the European Commission, DG RTD, through FP5 (QLK6-CT-2001-00360), FP6 (SHARE-I3: RII-CT-2006-062193, COMPARE: CIT5-CT-2005-028857, SHARELIFE: CIT4-CT-2006-028812), FP7 (SHARE-PREP: GA No. 211909, SHARE-LEAP: GA No. 227822, SHARE M4: GA No. 261982, DASISH: GA No. 283646), and Horizon 2020 (SHARE-DEV3: GA No. 676536, SHARE-COHESION: GA No. 870628, SERISS: GA No. 654221, SSHOC: GA No. 823782) and by DG Employment, Social Affairs & Inclusion through VS 2015/0195, VS 2016/0135, VS 2018/0285, VS 2019/0332, and VS 2020/0313. Additional funding from the German Ministry of Education and Research, the Max Planck Society for the Advancement of Science, and the U.S. National Institute on Aging (U01_AG09740-13S2, P01_AG005842, P01_AG08291, P30_AG12815, R21_AG025169, Y1-AG-4553-01, IAG_BSR06-11, OGHA_04-064, HHSN271201300071C, RAG052527A) and from various national funding sources is gratefully acknowledged (see www.share-project.org ). The project development and data collection in Israel were supported by the National Institutes of Health (NIH) of the USA, National Insurance Institute of Israel, German-Israeli Foundation for Scientific Research and Development (GIF), European Commission through the 7th framework program, Ministry of Science and Technology, and Ministry of Senior Citizens. The data was collected by the Israeli Gerontological Data Center at the Hebrew University in Jerusalem. Wave 3 data collection in Israel was funded by the NIH (R01-AG031729) and the Ministry for Senior Citizens. The SHARE-Israel Project is administered by the Israel Gerontological Data Center at the Hebrew University in Jerusalem, Israel. The data were collected by the B. I. and Lucille Cohen Institute for Public Opinion Research.

Publisher Copyright:
© 2023, The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.

Keywords

  • Conflict
  • Preferences for redistribution

ASJC Scopus subject areas

  • Demography
  • Economics and Econometrics

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