The Urban-Rural Divide: Perceptions of Inequality in Central and Eastern Europe

Chiara Binelli and Matthew Loveless
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Matthew Loveless: University of Kent, UK

Working Paper series from Rimini Centre for Economic Analysis

Abstract: Several studies have shown that perceptions of inequality vary with individuals' socioeconomic location: the higher the level of income, the less inequality is perceived. Here we argue that another type of location, the rural or urban area where an individual lives, is an important determinant of inequality perceptions and affects the impact of income on perceptions. Using survey data from 12 Central and Eastern European countries in 2007, we find that income has a negative effect on inequality perceptions only for those living in urban areas. Therefore, once controlling for urbanity, income ceases to have an independent effect on inequality perceptions. These findings suggest that previous work may have overlooked important sub-national differences, which are crucial to understand individuals' views of inequality.

Keywords: Inequality Perceptions; Central and Eastern Europe (search for similar items in EconPapers)
JEL-codes: D31 O15 P25 (search for similar items in EconPapers)
Date: 2014-04
New Economics Papers: this item is included in nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:rim:rimwps:10_14

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