(Mis-)Perception of Inequality: Measures, Determinants, and Consequences
Marandola, G. and Xu, Y., (Mis-)perception of Inequality: Measures, determinants and consequences., EUR 30819 EN, Publications Office of the European Union, Luxembourg, 2021, ISBN 978-92-76-41246-5 (online), doi:10.2760/444832 (online), JRC125781.
24 Pages Posted: 9 Aug 2021 Last revised: 6 Oct 2021
Date Written: September 23, 2021
Abstract
Despite being considered by many to be harmful for society, inequality has been rising in the past decades. How people experience the level of inequality may be different from the objective levels of inequality. In this literature review we systematically revisit common elicitation methods of perceived inequality and find that they lead to quite different conclusions. Yet, it is clear that most people’s perceptions of inequality are biased. Individuals’ past experience and exposure to local inequality, have profound impact on subjective perception of inequality and on redistribution preferences. Positive expectations about upward mobility explain lack of support for redistribution.
Keywords: inequality, survey, misperception
JEL Classification: D31, D63, D83, H24, I30, P16
Suggested Citation: Suggested Citation