(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

See all articles by Ginevra Marandola

Ginevra Marandola

European Commission, Joint Research Centre; University of Bologna - School of Economics, Management, and Statistics; European Commission-Joint Research Centre

YiLong Xu

Utrecht University, School of Economics (U.S.E.)

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

Marandola, Ginevra and Xu, YiLong, (Mis-)Perception of Inequality: Measures, Determinants, and Consequences (September 23, 2021). 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., Available at SSRN: https://ssrn.com/abstract=3898673 or http://dx.doi.org/10.2139/ssrn.3898673

Ginevra Marandola (Contact Author)

European Commission, Joint Research Centre ( email )

Brussels
Belgium
3287433987 (Phone)

University of Bologna - School of Economics, Management, and Statistics ( email )

Piazza Scaravilli 1
40126 Bologna, fc 47100
Italy

European Commission-Joint Research Centre

Belgium

YiLong Xu

Utrecht University, School of Economics (U.S.E.) ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, +31 30 253 7373 3584 EC
Netherlands

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