Your Place in the World: Relative Income and Global Inequality

45 Pages Posted: 16 Dec 2019 Last revised: 4 Sep 2021

See all articles by Dietmar Fehr

Dietmar Fehr

Heidelberg University - Alfred Weber Institute for Economics

Johanna Mollerstrom

George Mason University

Ricardo Perez-Truglia

University of California, Berkeley; National Bureau of Economic Research (NBER)

Multiple version iconThere are 3 versions of this paper

Date Written: December 2019

Abstract

Although there is abundant evidence on individual preferences for policies that reduce national inequality, there is very little evidence on preferences for policies addressing global inequality. To investigate the latter, we conduct a two-year, face-to-face survey experiment on a representative sample of Germans. We measure how individuals form perceptions of their ranks in the national and global income distributions, and how those perceptions relate to their national and global policy preferences. We find that Germans systematically underestimate their true place in the world’s income distribution, but that correcting those misperceptions does not affect their support for policies related to global inequality.

Suggested Citation

Fehr, Dietmar and Mollerstrom, Johanna and Perez-Truglia, Ricardo, Your Place in the World: Relative Income and Global Inequality (December 2019). NBER Working Paper No. w26555, Available at SSRN: https://ssrn.com/abstract=3504440

Dietmar Fehr (Contact Author)

Heidelberg University - Alfred Weber Institute for Economics ( email )

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Heidelberg, D-69117
Germany

Johanna Mollerstrom

George Mason University ( email )

4400 University Drive
Fairfax, VA 22030
United States

Ricardo Perez-Truglia

University of California, Berkeley ( email )

310 Barrows Hall
Berkeley, CA 94720
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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