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

Fernando, Bruna (2024): Beyond selfishness: the interaction of income and human values in shaping Europeans’ ideology.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: political orientation; preferences; self-interest; redistribution; neuroeconomics; occupational class
• Subjects: A - General Economics and Teaching > A1 - General Economics > A13 - Relation of Economics to Social Values; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior; D - Microeconomics > D9 - Intertemporal Choice > D91 - Intertemporal Household Choice ; Life Cycle Models and Saving; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z13 - Economic Sociology ; Economic Anthropology ; Social and Economic Stratification

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