Preferences for redistribution in Latin America

Abstract

This paper examines redistributive preferences in Latin America, a region with some of the highest global levels of inequality. Using a unique survey from eight Latin American countries, the study investigates factors shaping these preferences, such as self-interest, perceptions of inequality, values and the relationship between citizens and the public sphere. Despite high support for progressive taxation, specific fiscal measures receive less endorsement. Lower income individuals and those exposed to negative income shocks are more supportive of redistribution, while political ideology significantly influences preferences, with left-wing voters showing greater support. Misperceptions about one’s position in the income distribution and widespread misinformation about redistributive policies contribute to limited support for certain measures. Perceptions of government corruption and elite capture lead to support for taxing the rich, but not for expenditures on the poor.