Political Polarization, Wage Inequality and Preferences for Redistribution
Melbourne Institute Working Paper No. 08/25
Date: August 2025
Author(s):
Abstract
Using nationally representative, randomized survey experiments, we investigate how beliefs about wage inequality impact preferences for redistribution. With more than 9,000 respondents in six high-income countries and a novel distribution builder tool, we elicit detailed beliefs about wage inequality and examine the impact of accurate information on support for redistribution. We find most respondents underestimate wage inequality and that information treatments have minimal effects, except for respondents on the far-right, who exhibit large increases in support for higher income taxes and social spending. Our findings suggest that far-right voters’ attitudes toward redistribution may be more malleable than is often assumed.