Does Inequality Harm the Middle Class?

Liliana Winkelmann and Rainer Winkelmann

Kyklos, 2010, vol. 63, issue 2, 301-316

Abstract: The paper provides estimates of the effect of economic inequality on middle class well being in Switzerland. Economic well being is proxied by a person's satisfaction with his/her income. Two inequality indicators are used, one standard (the Gini coefficient of the pre‐tax income distribution) and one novel (the number of luxury car registrations per 1000 population). Identification is through cross‐sectional variation of these indicators at various levels of spatial aggregation. Results using data from the Swiss Household Panel confirm the existence of a robust inverse relationship between inequality and satisfaction among the middle class.

Date: 2010
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https://doi.org/10.1111/j.1467-6435.2010.00474.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:kyklos:v:63:y:2010:i:2:p:301-316

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