Overconfident and underconcerned: Behavioral biases in redistribution attitudes

This study examines how overconfidence shapes individuals' preference for redistribution. We contend that overconfidence inflates individuals' income expectations, which reduces the perceived benefits of redistribution for these individuals and thereby weakens their preference for such policies. Using data from the 2014 China Family Panel Studies, we find that overconfident individuals are more confident in their future life and exhibit less concerns for economic inequality, healthcare, and social security issues—key proxies for preference for redistribution. These results are more pronounced among less wealthy individuals. In addition, our results remain unchanged after controlling for individuals' trust in government and risk preference. These findings highlight the role of biased belief in shaping individuals’ attitude toward redistribution, offering new insights for discussions on redistributive policies.