Misperceptions: An Analysis of Subjective Economic Inequality

Aboozar Hadavand

A chapter in Inequality, Taxation and Intergenerational Transmission, 2018, vol. 26, pp 247-281 from Emerald Group Publishing Limited

Abstract: This chapter focuses on an important aspect of economic inequality – the question of how people perceive inequality and whether these perceptions deviate in any meaningful way from statistical measures of inequality. Using a novel approach, the author investigates whether individuals across different countries are able to correctly estimate the shape of income distribution of the country where they reside. The author further investigates whether individuals have the distribution of a particular reference group in mind when they answer questions on inequality. The author finds that perceptions of inequality are frequently shaped by reference groups such as those formed according to educational attainment, age, and gender.

Keywords: Income Inequality; Subjective Inequality; Perception; Reference Groups; Inequality Measurement; Gini Coefficient; D31; D83; D63; I30 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:reinzz:s1049-258520180000026011

DOI: 10.1108/S1049-258520180000026011

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