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Beyond selfishness: the interaction of income and human values in shaping Europeans’ ideology

Author

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  • Fernando, Bruna
Abstract
The left-right scale of political orientation plays a pivotal role in shaping individual behaviour and government policies, particularly in Western countries. Rational-choice theory suggests that individuals with lower (higher) incomes lean towards left-wing (right-wing) redistributive policies. Empirical evidence has, however, challenged this classical view. Building on cognitive dissonance theory, neuroeconomics, and social psychology, this paper provides a more comprehensive view of ideology formation based on how individuals balance selfishness with other human motivations. The paper uses data from the European Social Survey and Schwartz’s scale of human values to estimate models of individuals’ political orientation, considering the potential endogeneity of income. The results show that relative income and the social values of Conservation and Self-Transcendence strongly affect ideology. Low-income individuals prioritize self-interest, however, while also preserving other motivations. This framework helps to explain heterogeneity in political preferences, as well as communication discourses and policies designed to fit different citizens’ profiles.

Suggested Citation

  • Fernando, Bruna, 2024. "Beyond selfishness: the interaction of income and human values in shaping Europeans’ ideology," MPRA Paper 120623, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:120623
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    File URL: https://mpra.ub.uni-muenchen.de/120623/1/MPRA_paper_120623.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    political orientation; preferences; self-interest; redistribution; neuroeconomics; occupational class;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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