Stockholm School of

PRELIMINARY VERSION This paper models the interaction between ethnic/racial identity, social class and re-distribution. Both redistributive polices and identity choices are endogenous, which implies several interesting model predictions. For example, the model provides an explanation for why redistribution may be higher, and social class identity more important, in ethnically homogenous societies. Another empirical regularity that the model can explain is why black people in the US prefer more redistribution than white people, also when controlling for personal income. Finally it is argued that the model can provide a framework for analyzing the interaction between other social identities, for example how regional, religious and gender identities interact with social class