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Abstract

Against a backdrop of vast income disparities across countries, this article develops a theory of how misperceptions of individuals’ relative international income shape mass support for cross-national transfers in the developed world. It tests this theory using a real-stakes experiment implemented on a nationally representative survey in the United States. I find that participants underestimate their percentile rank in the global income distribution by 27 points on average and overestimate the global median income by a factor of 10. Respondents who were randomly assigned to information on the global income distribution supported higher spending on foreign aid and cuts in agricultural trade protections at larger rates. A behavioral measure validates these survey data—donations to charities abroad rise by 55% relative to the control group. These findings contribute to our understanding of subjective perceptions, preferences for cross-border redistribution, and the conditions under which information can shape opinion and behavior.

Citation

Nair, Gautam. "Misperceptions of Relative Affluence and Support for International Redistribution." The Journal of Politics 80.3 (July 2018): 815-830.