Social Position and Fairness Views

CEBI WORKING PAPER SERIES, Working Paper 04/21

92 Pages Posted: 25 Mar 2021

See all articles by Kristoffer Balle Hvidberg

Kristoffer Balle Hvidberg

University of Copenhagen - Department of Economics

Claus Thustrup Kreiner

University of Copenhagen - Department of Economics

Stefanie Stantcheva

Harvard University - Department of Economics

Date Written: February 21, 2021

Abstract

We link survey data containing Danish people's perceptions of where they rank in various reference groups and fairness views with administrative records on their income history, life events, and reference groups. People know their income positions well, but believe others are closer to themselves than they really are. The perceived fairness of inequalities is strongly related to current social position, moves with shocks to social position (e.g., unemployment or promotions), and changes when people are experimentally shown their actual positions. People view inequalities within education group and co-workers as most unfair, but underestimate inequality the most exactly within these reference groups.

Keywords: social position, fairness views, inequality, misperceptions, information experiment

JEL Classification: C81, D31, D63, D72, D83

Suggested Citation

Hvidberg, Kristoffer Balle and Kreiner, Claus Thustrup and Stantcheva, Stefanie, Social Position and Fairness Views (February 21, 2021). CEBI WORKING PAPER SERIES, Working Paper 04/21, Available at SSRN: https://ssrn.com/abstract=3789933 or http://dx.doi.org/10.2139/ssrn.3789933

Kristoffer Balle Hvidberg (Contact Author)

University of Copenhagen - Department of Economics

Øster Farimagsgade 5, Bygn 26
Copenhagen, 1353
Denmark

Claus Thustrup Kreiner

University of Copenhagen - Department of Economics ( email )

Øster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark

Stefanie Stantcheva

Harvard University - Department of Economics ( email )

Littauer Center
Cambridge, MA 02138
United States

HOME PAGE: http://scholar.harvard.edu/stantcheva/home

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