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145 | On Perceived Inequality, the Demand for Redistribution, and Voting inequality of gross incomes will lead to higher levels of redistribution in a majority - voting equilibrium . On the other hand, Benabou and Ok’s ( 2001 ) Prospect of Upward Mobility ( POUM ) hypothesis assumes that people with below - average incomes today may not support redistribution, because they believe that they, or their children, might move upward in the future and therefore progressive taxation would hurt them . Corneo and Grüner ( 2002 ) try to understand why people may be i n favor of governmental action aimed at reducing income inequality . Using data from the ISSP 1992 survey, they examine the importance of three possible determinants which they call the “homo oeconomicus effect”, the “public values effect”, and the “social rivalry effect” . Assuming two possible redistributive programs A and B, the “homo oeconomicus effect " implies that an individual will select the program which would give him or ...
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