The proposed research aims at taking the current state of the art one step further by building on the existing literature to model social identity to explain preferences for redistribution. Moreover, the proposed research will employ novel econometric techniques and individual survey type data. In particular, I am focusing on social interaction models that allow both endogenous and contextual effects. Additionally, I aim at gaining deeper insights about the composition of the socioeconomic matrix using innovative techniques. Finally, I am investigating the presence of nonlinearities and multiple equilibria using novel econometric methodologies such as threshold regression models accounting for the endogeneity of the threshold variable.
The main findings reveal a substantial role of social identity in the formation of preferences for redistribution. In particular, I find that exposure to the redistributive preferences of other individuals with a similar socioeconomic background increases demand for redistribution in the future. Furthermore, I uncover evidence of threshold effects in preferences for redistribution using threshold regressions. These threshold effects imply both asymmetric social and individual effects that emerge due to social preferences and contextual characteristics related to inequality, marriage, father's education, Protestantism, and macroeconomic shocks, as well as in a set of country characteristics.
Primarily, the impact of the outgoing phase has considerably developed my research knowledge and skills, through the high quality research conducted during this phase and the collaboration and exchange of ideas with both supervisors and other faculty members at UCLA. The impact of the work carried out during the outgoing phase can be exploited by the broader academic community. Additionally, the results can impact policy makers in the areas of social exclusion, social integration, and discrimination. An additional impact of the outgoing phase on my research career, was the network that has been built during these 24 months. This has enriched both my communication, and collaboration skills, and opened the door for future collaborations, novel ideas and high quality research. Finally, working outside Europe has enriched our knowledge at the University of Cyprus by introducing novel data, fresh ideas and theories, and pioneering econometric methods.
