@article {4777,
	title = {Social Identity and Preferences over Redistribution},
	journal = {Journal of Public Economics},
	volume = {94},
	number = {3-4},
	year = {2010},
	pages = {269-278},
	abstract = {We design an experiment to study the effects of social identity on\&nbsp;preferences over redistribution. The experiment highlights the trade-off\&nbsp;between social identity concerns and maximization of monetary payoffs.\&nbsp;Subjects belonging to two distinct natural groups are randomly assigned\&nbsp;gross incomes and vote over alternative redistributive tax regimes, where\&nbsp;the regime is chosen by majority rule. We find that a significant subset of\&nbsp;the subjects systematically deviate from monetary payoff maximisation\&nbsp;towards the tax rate that benefits their group when the monetary cost of\&nbsp;doing so is not too high. These deviations cannot be explained by efficiency\&nbsp;concerns, inequality aversion, reciprocity, social learning or conformity.\&nbsp;Finally, we show that behavior in the lab helps explain the relationship\&nbsp;between reported income and stated preferences over redistribution observed\&nbsp;in survey data.},
	author = {Esteban F. Klor and Moses Shayo}
}
