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The subversive nature of inequality: Subjective inequality perceptions and attitudes to social inequality

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  • Kuhn, Andreas

Abstract

This paper shows that higher levels of perceived wage inequality are associated with a weaker (stronger) belief into meritocratic (non-meritocratic) principles as being important in determining individual wages. This finding is further corroborated using various complementary measures of individuals’ perception of the chances and risks associated with an unequal distribution of economic resources, such as their perception of the chances of upward mobility. I finally show that those individuals perceiving a high level of wage inequality also tend to be more supportive of redistributive policies and progressive taxation. Taken together, these findings suggest that high levels of perceived wage inequality do have the potential to undermine the legitimacy of market outcomes.

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  • Kuhn, Andreas, 2019. "The subversive nature of inequality: Subjective inequality perceptions and attitudes to social inequality," European Journal of Political Economy, Elsevier, vol. 59(C), pages 331-344.
    • Handle: RePEc:eee:poleco:v:59:y:2019:i:c:p:331-344
    DOI: 10.1016/j.ejpoleco.2019.04.004
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    Cited by:

    1. Michał Litwiński & Rafał Iwański & Łukasz Tomczak, 2023. "Acceptance for Income Inequality in Poland," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 166(2), pages 381-412, April.
    2. Bohmann, Sandra & Kalleitner, Fabian, 2023. "Subjective Inequity Aversion: Unfair Inequality, Subjective Well-Being, and Preferences for Redistribution," SocArXiv g8arw, Center for Open Science.
    3. Peter Calcagno & Alexander Marsella & Yang Zhou, 2024. "Income inequality and party alternation: State‐level evidence from the United States," Contemporary Economic Policy, Western Economic Association International, vol. 42(2), pages 355-374, April.
    4. 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).
    5. Andreoli, Francesco & Olivera, Javier, 2020. "Preferences for redistribution and exposure to tax-benefit schemes in Europe," European Journal of Political Economy, Elsevier, vol. 63(C).
    6. Brun, Martín & D'Ambrosio, Conchita & Ferrer-i-Carbonell, Ada & Ramos, Xavier, 2023. "After You. Cognition and Health-Distribution Preferences," IZA Discussion Papers 16126, Institute of Labor Economics (IZA).
    7. Arnim Langer & Lucas Leopold & Bart Meuleman, 2024. "Who Deserves To Be Supported? Analysing Attitudes Towards Horizontal Redistribution in Nigeria," Social Inclusion, Cogitatio Press, vol. 12.
    8. Andreas Kuhn, 2020. "The individual (mis-)perception of wage inequality: measurement, correlates and implications," Empirical Economics, Springer, vol. 59(5), pages 2039-2069, November.
    9. Summers, Kate & Accominotti, Fabien & Burchardt, Tania & Hecht, Katharina & Mann, Elizabeth & Mijs, Jonathan J.B, 2022. "Deliberating inequality: a blueprint for studying the social formation of beliefs about economic inequality," LSE Research Online Documents on Economics 114591, London School of Economics and Political Science, LSE Library.
    10. Kris‐Stella Trump, 2023. "Income inequality is unrelated to perceived inequality and support for redistribution," Social Science Quarterly, Southwestern Social Science Association, vol. 104(2), pages 180-188, March.
    11. Frederich Kirsten & Ilse Botha & Mduduzi Biyase & Marinda Pretorius, 2023. "Determinants of Subjective Social Status in South Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 168(1), pages 1-24, August.
    12. Ziano, Ignazio & Lembregts, Christophe & Pandelaere, Mario, 2022. "People weigh salaries more than ratios in judgments of income inequality, fairness, and demands for redistribution," Journal of Economic Psychology, Elsevier, vol. 89(C).
    13. Suss, Joel, 2023. "Measuring local, salient economic inequality in the UK," LSE Research Online Documents on Economics 117884, London School of Economics and Political Science, LSE Library.
    14. Thomas Isbell, 2024. "Where You Sit Is Where You Stand: Perceived (In)Equality and Demand for Democracy in Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 174(3), pages 817-836, September.
    15. Brzezinski, Michal & Myck, Michał & Najsztub, Mateusz, 2022. "Sharing the gains of transition: Evaluating changes in income inequality and redistribution in Poland using combined survey and tax return data," European Journal of Political Economy, Elsevier, vol. 73(C).

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    More about this item

    Keywords

    Inequality perceptions; Attitudes to social inequality; Legitimacy of market outcomes; Beliefs about the causes of economic success; Support of redistribution;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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