An Empirical Analysis of the Determinants of Perceived Inequality

29 Pages Posted: 11 May 2019

See all articles by sebastiano bavetta

sebastiano bavetta

University of Palermo - d/SEAS

Paolo Li Donni

University of Palermo

Maria Marino

University of Palermo

Date Written: June 2019

Abstract

Perception of inequality is important for the analysis of individuals' motivations and decisions and for policy assessment. Despite the broad range of analytic gains that it grants, our knowledge about measurement and determinants of perception of inequality is still limited, since it is intrinsically unobservable, multidimensional, and essentially contested. Using a novel econometric approach, we study how observable individual characteristics affect the joint distribution of a set of indicators of perceived inequality in specific domains. Using data from the International Social Survey Programme, we shed light on the associations among these indicators and how they are affected by covariates. The approach also gives insights on some results in the literature on inequality. The role of many subjective indicators for the perception of inequality is re‐examined and examples of policy applications are reviewed. The importance of our empirical approach to the measurement of perceived inequality is, in so doing, reinforced.

Keywords: inequality of outcome, inequality of opportunity, fairness, perception of inequality

Suggested Citation

bavetta, sebastiano and Li Donni, Paolo and Marino, Maria, An Empirical Analysis of the Determinants of Perceived Inequality (June 2019). Review of Income and Wealth, Vol. 65, Issue 2, pp. 264-292, 2019. Available at SSRN: https://ssrn.com/abstract=3385028 or http://dx.doi.org/10.1111/roiw.12351

Sebastiano Bavetta (Contact Author)

University of Palermo - d/SEAS

Viale delle Scienze, edificio 13
Palermo, 90124
Italy

Paolo Li Donni

University of Palermo

Viale delle Scienza
Palermo, 90128
Italy

Maria Marino

University of Palermo

Viale delle Scienza
Palermo, 90128
Italy

Register to save articles to
your library

Register

Paper statistics

Downloads
1
Abstract Views
32
PlumX Metrics