People Like Us? How Mass Preferences Are Shaped by Economic Inequality and Racial Diversity

Abstract

The US has experienced runaway economic inequality since the 1970s, yet there is no strong public support for government efforts that serve to narrow the growing disparities between citizens. Why? I point to the role of rising racial diversity. I argue Americans believe in conditional equality, where they support equalizing policies as long as they perceive the beneficiaries as people like themselves. However, as the country grows more diverse, citizens are less likely to perceive those around them as people like themselves. Using time-series cross-sectional data of the American states, I demonstrate that as racial diversity increases, the likelihood the public will respond to increasing inequality by supporting bigger government declines. This study provides evidence for the mechanism usually implied but rarely tested by studies of diversity and policy: mass preferences.