THE FORMATION OF ATTITUDES TOWARDS REDISTRIBUTION: The Role of the Macroeconomic Environment During Young Adulthood

Abstract

This study investigates the effect of the macroeconomic environment during young adulthood on individuals’ preferences for government redistribution. The General Social Survey (GSS) is my source of information on preferences for a variety of redistributive government policies. I utilize regional data on nominal GDP, real GDP, real per capita income, and yearly unemployment rates to characterize an individual’s macroeconomic environment during his or her formative years. I find that experiencing positive macroeconomic shocks increases preferences for redistribution, and that this effect is robust and long lasting. This effect is strongest when measured with real per capita income. In some specifications, negative macroeconomic shocks affect attitudes towards government redistribution, but the impact is not robust.