A note on the POUM effect with heterogeneous social mobility

► We study the determinants of the (Prospect of Upward Mobility) POUM effect. ► The POUM effect depends on the concavity of expected incomes. ► The POUM effect depends on the length of policy horizon. ► More concave mobility processes increases the polarization in the redistribution preferences. ► A preliminary estimation of the POUM effect using Italian data.