Transcript Slide 1

Public attitudes towards inequality,
redistribution, and welfare
provision
Tom Sefton
London School of Economics
Attitudes towards inequality
• Most people think gap between rich
and poor is too large
% who say that the gap between those
with high and low incomes is...
% of all respondents
100
90
80
70
60
50
40
30
20
10
0
1983
1985
1987
1989
too large
Source: British Social Attitudes Survey
1991 1993
1995
about right
1997
1999
2001
too small
Attitudes towards inequality
• Most people think gap between rich and
poor is too large
• Concern about inequality extends
across social and economic groups
e
Source: 2002 BSA
oc
ra
t
55
+
35
-5
4
18
-3
4
>£
38
k
£2
038
k
£1
020
k
<£
10
k
Li
be
ra
ld
em
La
bo
ur
Co
ns
er
va
tiv
% who agree
Income gap is too large...
100
90
80
70
60
50
40
30
20
10
0
Attitudes towards inequality
• Most people think gap between rich and
poor is too large
• Concern about inequality extends across
social and economic groups
• Problem is (at least) as much to do with
the top end of income distribution
Perceived average earnings of different occupations (1999)
Median response
(£ per annum)
Does
earn
Should
earn
Shop assistant
9,000
12,000
Unskilled factory worker
10,000
12,000
Skilled factory worker
15,000
18,000
Solicitor
50,000
40,000
Manager of large factory
55,000
50,000
Appeal court judge
80,000
50,000
Chairman of large corporation
125,000
75,000
13.9
6.3
Ratio between highest and lowest
Source: 1999 BSA
Attitudes towards inequality
• Most people think gap between rich and
poor is too large
• Concern about inequality extends across
social and economic groups
• Problem is (at least) as much to do with
the top end of income distribution
• Clear majority believe government has
a responsibility to reduce inequality
Attitudes towards redistribution
• Much less agreement on whether
government should redistribute from
rich to poor
Government should redistribute incomes
from better off to less well off...
60
% of all respondents
50
40
30
20
10
0
1986
1988
1990
Agree
Source: British Social Attitudes Survey
1992
1994
Neither
1996
1998
2000
2002
Disagree
Attitudes towards redistribution
• Much less agreement on whether
government should redistribute from rich
to poor
• Ideological gap has narrowed, but
differences by age have emerged
Changing attitudes towards redistribution, 1987-2002
% who agree that the government
should redistribute income from
better off to those who are worse
off
Change:
1987–2002
1987
1996
2002
Conservative
21
22
21
0
Labour
69
58
49
-20
18–34
50
44
34
-16
35–54
42
46
38
-4
55+
42
43
43
+1
By party identification:
By age group:
Source: British Social Attitudes Survey
Attitudes towards redistribution
• Much less agreement on whether
government should redistribute from rich
to poor
• Ideological gap has narrowed, but
differences by age have emerged
• How to reconcile this with attitudes
towards inequality?
Attitudes towards public spending
• Strong and continuing support for
higher spending and taxes
Views on public spending and taxation
70
% agreeing with statements
60
50
40
30
20
10
0
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
Government should…
increase taxes and spend more on health, education and social benefits
Attitudes towards public spending
• Strong and continuing support for higher
spending and taxes:
– Extends across socio-economic groups
– Almost as strong among private welfare
users
– Health and education are highest priorities
– Most would favour relatively small
increases in spending in these areas
Attitudes towards public spending
• Strong and continuing support for higher
spending and taxes…
• Contrasts with decline in support for
“more spending on welfare benefits for
the poor”
Views on public spending and taxation
70
% agreeing with statements
60
50
40
30
20
10
0
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
Government should…
increase taxes and spend more on health, education and social benefits
spend more money on welfare benefits for the poor even if means higher higher taxes
Attitudes towards public spending
• Strong and continuing support for higher
spending and taxes…
• Contrasts with declining support for “more
spending on welfare benefits for the poor”
• Though widespread support for
benefits to certain groups
Public attitudes towards welfare spending on poor or
vulnerable groups
% who say they would like to see more government spending on
benefits for:
Retired
people
Disabled
people
who
cannot
work
Parents
who work
on very low
incomes
Single
parents
Of those who agree
that government should
spend more on welfare
benefits for the poor
79
78
78
47
33
Of those who disagree
that government should
spend more on welfare
benefits for the poor
67
56
58
27
7
Source: 2002 BSA
Unemployed
people
Attitudes towards social security
• On the one hand, benefit levels seen to
be inadequate by many people
Attitudes towards social security
• On the one hand, benefit levels seen to be
inadequate by many people
• On the other hand, there are strong and
growing concerns about disincentive
effects and fraud
Attitudes towards social security
• On the one hand, benefit levels seen to be
inadequate by many people
• On the other hand, there are strong and
growing concerns about disincentive
effects and fraud
• Hardening of attitudes in recent years,
especially among Labour identifiers
and younger people
Benefits for unemployed are too high or too low
60
% of all respondents
50
40
30
20
10
0
1982
1984
1986
1988
1990
1992
1994
1996
Too low and cause hardship
Too high and discourage work
Neither of the above
Source: British Social Attitudes Survey
1998
2000
2002
And finally…
• Redistribution is not seen as a key
outcome of public spending and taxation
• But, there does appear to be strong
support for redistribution as ‘by-product’
of taxing and spending in ways people
want
• Concept of mutuality: people pay in what
they reasonably can and draw out what
they reasonably need