Income Inequality and Pro-Poor Opinions: Empirical Evidence at Regional Level

Drawing on insights from neurophysiology (neural mirror systems) and behavioral economics (inequity and guilt aversion), we argue that heightened exposure to inequality intensifies individuals' awareness of social disparities, driving support for welfare policies aimed at reducing visible gaps. Using data from the European Social Survey across 26 countries and 205 regions, we test whether regional inequality increases support for pro-poor policies. We find a significant positive relationship between regional inequality and individuals' preference for social care for the most disadvantaged, particularly among higher-income and educated groups. The relationship holds across robustness checks and remains significant when addressing endogeneity concerns with instrumental variables. Our study shifts from traditional analyses by examining how actual inequality shapes beliefs on social fairness, rather than merely redistributive preferences, highlighting inequality's foundational role in moral and social values. Consistent with theories of income-dependent altruism, we suggest that wealthier individuals, made fully aware of social disparities show increased support for redistribution in contexts of high inequality.