Status-Seeking and the Taste for Redistribution

Abstract: This thesis follows an epidemiological approach methodology to study if cultural preferences for status-seeking has a positive effect on preferences for redistribution. I empirically evaluate a causal relationship predicted in a theoretical model, suggesting an alternative channel of cultural transmission through which preferences for redistribution are determined by cultural preferences for status. The results provide a robust indication that parent birth country preferences for status-seeking has a positive effect on individual preferences for redistribution, which is statistically significant. In addition, the findings show that the effect is consistent when estimated for a wide range of economic and demographic control variables. Further examination reveals that the effect of cultural status-seeking preferences is likely most strongly transmitted from the mother, which adds to previous research showing similar differences in cultural transmission between parents. In addition, this thesis provides an initial indication of a positive effect of cultural status-seeking preferences on individual voting behavior, adding further support that such cultural preferences matter for attitudes towards redistribution.