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, Stefanie Stantcheva, and Edoardo Teso, âIntergenerational mobility and preferences for redistribution, â American Economic Review, 2018, 108 (2), 521â54.
- (a) Year 2012 (b) Year 2015 Figure 6: Example of an âapartment building shockâ Notes: Example of a new apartment building shock. In 2012, the Local Neighborhood Gini (LNG) (r = 100) associated with the building in the top panel was 0.02. In 2015, the LNG increased to 0.23 after the construction of a new apartment building on a former parking lot. Building details: C/ Aiguablava 3, 08042 Barcelona (Cadastre code 1690916DF3819B).
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- 13A result consistent with previous research (e.g., Cruces et al. 2013, Sands 2017). demand for redistribution between 6 and 9% of a SD. Effects are also slightly stronger among left-wingers and older individuals, but differences are not significant.
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- 2Evidence suggests that interactions at the local level matter. For example, Wellman (1996), in the context of Toronto, shows that close neighbors account for a significant share of contacts. Bayer et al. (2008), in the context of Boston, shows that interactions at the city-block level can have positive effects in the marketplace, for example, in terms of job referrals.
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- 3Several studies suggest that random forests typically overperform standard hedonic price regressions and other machine learning methods such as LASSO (Äeh et al. 2018, Fan et al. 2006, Mullainathan and Spiess 2017). 4I implemented the algorithm using hyperparameter tunning (sample split, variables per split, nodes). The final prediction grew 500 trees, nine nodes, an 80% sample split, 42 variables to split in each node, and allowing the algorithm to decide on each variableâs importance based on the reduction of node impurity after each split.
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- 9Information treatments are sometimes unable to shift beliefs. Research suggests that these types of experiments are more effective when they are less informational and have a strong visual or emotional component (Engelhardt and Wagener 2018, Kuziemko et al. 2015). of a SD (1.3 to 2.5% of the mean). These shifts are slightly larger and more significant at the top (percentiles 90 and 99) and in the middle (percentiles 50 and 30). In other words, the treatment did not significantly affect beliefs about inequality but made participants think there was more income to redistribute. That explains the positive but not significant effect on Perceived Gini, and it might partly explain the small effect on Preferences for Redistribution documented in Table D2.
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- ⢠Household income question: do not ask about current income. Ask about income earned during 2019 instead. ⢠Unemployment question: add COVID as a reason for unemployment. ⢠On several questions (e.g., commuting and social interactions): explicitly ask before and after COVID. Make sure the question is well-adapted to the pandemic (e.g., add âwork from homeâ as an option in the commuting question).
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Algan, Yann, Camille Hémet, and David D Laitin, âThe social effects of ethnic diversity at the local level: A natural experiment with exogenous residential allocation,â Journal of Political Economy, 2016, 124 (3), 696â733.
- All continuous variables are standardized. Preferences for Redistribution measures demand for redistribution in a scale from 0 to 10, with 10 representing the highest demand for redistribution. New Building Treatment is an indicator taking the value of 1 if the individual resides within 350 meters of a new construction (built in 2017-19).
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Alvaredo, Facundo and Emmanuel Saez, âIncome and wealth concentration in Spain from a historical and fiscal perspective,â Journal of the European Economic Association, 2009, 7 (5), 1140â1167.
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Bayer, Patrick, Stephen L Ross, and Giorgio Topa, âPlace of work and place of residence: Informal hiring networks and labor market outcomes,â Journal of Political Economy, 2008, 116 (6), 1150â1196.
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Chetty, Raj and Nathaniel Hendren, âThe impacts of neighborhoods on intergenerational mobility I: Childhood exposure effects,â The Quarterly Journal of Economics, 2018, 133 (3), 1107â1162.
Chyn, Eric, âMoved to opportunity: The long-run effects of public housing demolition on children,â American Economic Review, 2018, 108 (10), 3028â56.
- Citywide value/space inequality is above the mean LNG. It is helpful to go back to the toy example in Figure A1 to interpret this result. Both cities have a City Gini of 0.167, but they substantially differ in their mean LNG. The mean LNG in City 2 is 0.161. It is 0.091 in City 1 (about 43% smaller). The large discrepancy is due to the differential spatial distribution of dwellings within the city or, in other words, due to differences in residential segregation. As Glaeser et al. (2009) articulated, local inequality and segregation are essentially two sides of the same coin. Hence, even if not formally defined in this paper, the gap between city Gini and mean LNG is informative about the level of housing segregation in the city.
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- Columns 3-6 further restrict the sample to individuals who have lived in the same dwelling since at least 2010 or 2005. Columns 7-10 further restrict the sample to include only either renters or homeowners. Individual controls include age, log household income, household size, and indicators for female, foreign, university, marital status, religiosity, left-wing ideology, rental status, and employment status. Neighborhood controls (at the census tract level in 2015) include population density, median apartment size (log square meters), quality, year of construction, share of foreign population, left-wing partiesâ vote share in the 2015 national elections, and value LNG (r = 350). All regressions include city-district fixed effects. Robust standard errors clustered at the city-neighborhood level in parenthesis.
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Couture, Victor, Cecile Gaubert, Jessie Handbury, and Erik Hurst, âIncome growth and the distributional effects of urban spatial sorting,â Technical Report, National Bureau of Economic Research 2019.
Cruces, Guillermo, Ricardo Perez-Truglia, and Martin Tetaz, âBiased perceptions of income distribution and preferences for redistribution: Evidence from a survey experiment,â Journal of Public Economics, 2013, 98, 100â112.
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Engelhardt, Carina and Andreas Wagener, âBiased perceptions of income inequality and redistribution,â 2014.
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Fernández-Albertos, José and Alexander Kuo, âIncome perception, information, and progressive taxation: Evidence from a survey experiment,â Political Science Research and Methods, 2018, 6 (1), 83â110.
- Figure B3: Screenshot of the alternative question eliciting inequality perceptions, borrowed from the ISSP (2009) Notes: This figure is a screenshot of the (translated) âpyramid questionâ, first introduced in a survey by the Social Survey Programme (ISSP) in 2009. It serves as an alternative to the question illustrated in Figure 1 to elicit respondentsâ perceived inequality. It confronts participants with five diagrams representing hypothetical societies and asks them to choose the one that best represents Spain in their view. Table B1: Sample distribution across the (10) districts and (73) neighborhoods of Barcelona, compared to actual population District Neighborhood Sample (%) Pop.
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Fisman, Raymond, Ilyana Kuziemko, and Silvia Vannutelli, âDistributional preferences in larger groups: Keeping up with the Joneses and keeping track of the tails,â Journal of the European Economic Association, 2021, 19 (2), 1407â1438.
Fogli, Alessandra and Veronica Guerrieri, âThe end of the american dream? inequality and segregation in us cities,â Technical Report, National Bureau of Economic Research 2019.
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Glaeser, Edward L, Matt Resseger, and Kristina Tobio, âInequality in cities,â Journal of Regional Science, 2009, 49 (4), 617â646.
Gould, Eric D, Victor Lavy, and M Daniele Paserman, âImmigrating to opportunity: Estimating the effect of school quality using a natural experiment on Ethiopians in Israel,â The Quarterly Journal of Economics, 2004, 119 (2), 489â526.
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Hoy, Christopher and Franziska Mager, âWhy Are Relatively Poor People Not More Supportive of Redistribution ? Evidence from a Randomized Survey Experiment across Ten Countries,â American Economic Journal: Economic Policy, November 2021, 13 (4), 299â328.
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- Individual controls include age, log household income, household size, and indicators for female, foreign, university, marital status, religiosity, leftwing ideology, rental status, and employment status. Neighborhood controls (at the census tract level in 2015) include population density, median apartment size (log square meters), quality, year of construction, share of foreign population, left-wing partiesâ vote share in the 2015 national elections, and value LNG (r = 350). All regressions include city-district fixed effects. Robust standard errors clustered at the city-neighborhood level in parenthesis.
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- Individual controls include age, log household income, household size, and indicators for female, foreign, university, marital status, religiosity, leftwing ideology, rental status, and employment status. Neighborhood controls (at the census tract level in 2015) include population density, median apartment size (log square meters), quality, year of construction, share of foreign population, left-wing partiesâ vote share in the 2015 national elections, and value LNG (r = 350). All regressions include city-district fixed effects. Robust standard errors clustered at the city-neighborhood level in parenthesis.
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Karadja, Mounir, Johanna Mollerstrom, and David Seim, âRicher (and holier) than thou? The effect of relative income improvements on demand for redistribution,â Review of Economics and Statistics, 2017, 99 (2), 201â212.
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Kuziemko, Ilyana, Michael I Norton, Emmanuel Saez, and Stefanie Stantcheva, âHow elastic are preferences for redistribution? Evidence from randomized survey experiments,â American Economic Review, 2015, 105 (4), 1478â1508.
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Ludwig, Jens, Greg J. Duncan, Lisa A. Gennetian, Lawrence F. Katz, Ronald C. Kessler, Jeffrey R. Kling, and Lisa Sanbonmatsu, âLong-Term Neighborhood Effects on Low-Income Families: Evidence from Moving to Opportunity,â American Economic Review, May 2013, 103 (3), 226â31.
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Mullainathan, Sendhil and Jann Spiess, âMachine Learning: An Applied Econometric Approach,â Journal of Economic Perspectives, May 2017, 31 (2), 87â106.
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- New Building Treatment is an indicator taking the value of 1 if the individual resides within 200 (Columns 1-2), 350 (Columns 3-4), or 500 (Columns 5-6) meters of a new apartment building (constructed in 2017-19). The sample is restricted to individuals who have resided in the same dwelling since at least 2015. Individual controls include age, log household income, household size, and indicators for female, foreign, university, marital status, religiosity, leftwing ideology, rental status, and employment status. Neighborhood controls (at the census tract level in 2015) include population density, median apartment size (log square meters), quality, year of construction, share of foreign population, left-wing partiesâ vote share in the 2015 national elections, and value LNG (r = 350). All regressions include city-district fixed effects. Robust standard errors clustered at the city-neighborhood level in parenthesis.
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- New Building Treatment is an indicator taking the value of 1 if the individual resides within 350 meters of a new construction (built within the past one (Panel C), two (Panel B) or three (Panel A) years). Sample is restricted to individuals residing in the same dwelling from at least 2015. No Previous Exposure (Columns 2, 4, and 6) further restricts the sample to individuals not having been exposed to a new building treatment before the time window considered.
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Newman, Benjamin J, Christopher D Johnston, and Patrick L Lown, âFalse consciousness or class awareness ? Local income inequality, personal economic position, and belief in American meritocracy,â American Journal of Political Science, 2015, 59 (2), 326â340.
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- Note: Black markers represent the actual income at the percentile .125 .25 .5 1 2 4 8 16 16 32 64 128 256 Perceived Monthly Income (1000s EUR) P10 P30 P50 P70 P90 P99 Figure 3: Perceived national income distribution among respondents Notes: Boxplot of respondentsâ perceived monthly income at different percentiles. The figure excludes outliers. The y-axis is log-scaled. The median values for the percentiles 10, 30, 50, 70, 90, and 99 were 500, 1000, 1400, 2000, 4000, and 8000, respectively. The actual monthly incomes in these percentiles were 446, 790, 1144, 1678, 2795, and 5791, respectively (ECV, 2018). The black markers in the figure represent these values.
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- Pre-tax income inequality is high in these citiesâ regions, and always above Value Gini (in Barcelona) and Space Gini. At least three reasons could explain this. First, income is likely to exhibit higher variance than dwelling sizes (and therefore possibly dwelling values too). Second, space is scarce in cities, even when it is possible to increase density (e.g., by building taller buildings). Third, preferences over housing consumption are likely to be non-homothetic. Those at the top might be more prone to invest in assets other than real estate once a certain amount of dwelling consumption is attained (Albouy et al. 2016, Couture et al. 2019, Yang 2009).
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- Sands, Melissa L, âExposure to inequality affects support for redistribution,â Proceedings of the National Academy of Sciences, 2017, 114 (4), 663â668.
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Shoag, Daniel and Stan Veuger, âShops and the city: Evidence on local externalities and local government policy from big-box bankruptcies,â Review of Economics and Statistics, 2018, 100 (3), 440â453.
- The sample is restricted to individuals who have resided in the same dwelling since at least 2015. Individual controls include age, log household income, household size, and indicators for female, foreign, university, marital status, religiosity, left-wing ideology, rental status, and employment status. Neighborhood controls (at the census tract level in 2015) include population density, median apartment size (log square meters), quality, year of construction, share of foreign population, left-wing partiesâ vote share in the 2015 national elections, and value LNG (r = 350). All regressions include city-district fixed effects. Robust standard errors clustered at the city-neighborhood level in parenthesis.
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- This implies excluding individuals exposed to treatment in 2017 (Panel B) or 2017 and 2018 (Panel C). Individual controls include age, log household income, household size, and indicators for female, foreign, university, marital status, religiosity, left-wing ideology, rental status, and employment status. Neighborhood controls (at the census tract level in 2015) include population density, median apartment size (log square meters), quality, year of construction, share of foreign population, left-wing partiesâ vote share in the 2015 national elections, and value LNG (r = 350). All regressions include city-district fixed effects. Robust standard errors clustered at the city-neighborhood level in parenthesis.
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- Xu, Ping and James C Garand, âEconomic context and Americansâ perceptions of income inequality,â Social Science Quarterly, 2010, 91 (5), 1220â1241.
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