Can conflict affect individuals’ preferences for income redistribution?

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.