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Attitudes Toward Economic Inequality: The Illusory Agreement

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  • Pedersen, Rasmus T.
  • Mutz, Diana C.

Abstract

Recent studies of attitudes toward economic inequality suggest that most people around the world prefer very low levels of inequality, despite well-known trends toward greater inequality within many countries. Even within countries, people across the political spectrum are said to be in remarkable agreement about the ideal level of economic inequality. Using survey data from 40 countries and a novel survey experiment in the United States, we show that this apparent agreement is illusory. When relying on a widely used cross-national survey measure of Ideal Pay Ratios, preferred levels of inequality are heavily influenced by two well-documented sources of perceptual distortion: the anchoring effect and ratio bias. These effects are substantial and many times larger than the influence of fundamental political predispositions. As a result, these cross-national survey measures tapping preferences regarding economic inequality produce misleading conclusions about desired levels of inequality.

Suggested Citation

  • Pedersen, Rasmus T. & Mutz, Diana C., 2019. "Attitudes Toward Economic Inequality: The Illusory Agreement," Political Science Research and Methods, Cambridge University Press, vol. 7(4), pages 835-851, October.
    • Handle: RePEc:cup:pscirm:v:7:y:2019:i:04:p:835-851_00
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    Cited by:

    1. Matthew J. Easterbrook, 2021. "The social psychology of economic inequality," WIDER Working Paper Series wp-2021-43, World Institute for Development Economic Research (UNU-WIDER).
    2. Campos-Vazquez, Raymundo M. & Krozer, Alice & Ramírez-Álvarez, Aurora A. & de la Torre, Rodolfo & Velez-Grajales, Roberto, 2022. "Perceptions of inequality and social mobility in Mexico," World Development, Elsevier, vol. 151(C).
    3. Attila Gáspár & Carmen Cervone & Federica Durante & Anne Maass & Caterina Suitner & Roberta Rosa Valtorta & Michela Vezzoli, 2023. "A Twofold Subjective Measure of Income Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 168(1), pages 25-43, August.
    4. Licia Bobzien, 2023. "Income Inequality and Political Trust: Do Fairness Perceptions Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 505-528, September.

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