Perceived position on the social ladder and redistributive preferences – A survey experiment from the Kyrgyz Republic

Abstract

Prior research has established that both perceived and actual inequality matter for redistributive preferences. Hence, misconceptions can alter public demand for government intervention. Survey experiments have found systematic biases in people's inequality perceptions and found that, in some contexts, the provision of correct information may alter their preferences for redistribution. This literature has, however, centered around high-income, Western nations. This paper uses an experimental survey design to understand the effect of perceived poverty and inequality on the preferences for redistribution in the Kyrgyz Republic. Using primary survey data collected from 2000 households, we first analyze the attitudes of different socio-economic groups towards the poor and the extent to which attitudes predict preferences for redistributive policies. Secondly, we focus on how the perceived socio-economic position influences support for redistribution. Finally, using an experimental survey design, we estimate the effect of correcting misconceptions about individuals' socio-economic position on the support for redistribution. We find that the relationships between poverty attitudes and demand for government redistribution is similar to a high-income, Western context. Overall, demand for redistribution remains robust to new information about the position in the income distribution. The correction of biased perceptions only altered stated preferences for people with specific already-held beliefs.