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