Demand for Redistribution: Individuals’ Responses to Economic Setbacks

Abstract

Economic circumstances have been argued to be a major determining factor of attitudes toward redistribution, but there is little well-established evidence at the individual level. The Swedish National Election Studies are constructed as a rotating survey panel, which makes it possible to estimate the causal effect of economic changes. The empirical analysis shows that individuals who lose their job become considerably more supportive of redistribution. Yet, attitudes toward redistribution return to their initial level as economic prospects improve, suggesting that the effect is only temporary. While a job loss also changes attitudes toward the political parties, the probability of voting for the left-wing is not affected.