Preferences over social ranks have emerged as potential drivers of weaker than expected support for redistributive interventions among those closest to the bottom of the income distribution. We compare preferences for alterations of the income distribution affecting the decision maker’s social rank, but not their income, and compare them with similar alterations leaving both rank and income unchanged. Our study fails to find evidence of last-place aversion in a replication of Kuziemko et al. (Q J Econ 129(1):105–149, 2014). However, using a modified design that holds ranks fixed across rounds we find support for both a discontinuously greater disutility from occupying the last as opposed to higher ranks, thus affecting only those closest to the bottom of the distribution, and for a general dislike of rank reversals affecting most ranks. We discuss implications for policy design in both public finance and management science.

How does economic inequality affect support for redistribution to native citizens and immigrants? While prior studies have examined the separate effects of inequality and immigration on redistribution preferences, the interaction between inequality and communal identity has been largely overlooked. This article explains that inequality triggers selective solidarity. Individuals exposed to inequality become more supportive of redistribution – but only if the redistribution benefits native-born citizens. Inequality therefore reinforces the already popular opinion that native citizens deserve welfare priority and widens the gap between support for natives and support for immigrants. This study first provides cross-national evidence with survey data linked to contextual socio-economic indicators from advanced industrialized countries. To evaluate causally identified effects, it then presents the results of a survey experiment administered to a nationally representative sample of Italian citizens. The findings imply that economic inequality can increase support for populist radical right parties that advocate discrimination in access to welfare services based on native citizenship.