We model inter-individual differences in preferences for redistribution as afunction of (a) self-interest; (b) ideas about the deservingness of income differencesdue to luck, effort and talent; (c) subjective perceptions of the relative importanceof these determinants for explaining the actual income distribution. Individuals basethe latter on information obtained from their reference group. We analyse the con-sequences for redistributive preferences of homophilous reference group formationbased on talent. Our model makes it possible to understand and integrate some of themain insights from the empirical literature. We illustrate with GSS data from 1987how our model may help in structuring empirical work.
Schokkaert, E., & Truyts, T. (2017). Preferences for redistribution and social structure. Social Choice and Welfare, 49, 545-576. https://doi.org/10.1007/s00355-016-0996-6 (Original work published 2017)