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Does Inequality Harm the Middle Class?

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  • Liliana Winkelmann
  • Rainer Winkelmann

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. Copyright � 2010 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Kyklos.

Volume (Year): 63 (2010)
Issue (Month): 2 (05)
Pages: 301-316

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Handle: RePEc:bla:kyklos:v:63:y:2010:i:2:p:301-316

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Cited by:
  1. Nuno Crespo & Sandrina Berthault Moreira & Nádia Simões, 2011. "An integrated approach for the measurement of inequality, poverty, and richness," Working Papers 205, ECINEQ, Society for the Study of Economic Inequality.
  2. David G. Blanchflower & Andrew J. Oswald, 2011. "International Happiness," NBER Working Papers 16668, National Bureau of Economic Research, Inc.
  3. Winkelmann, Rainer, 2012. "Conspicuous consumption and satisfaction," Journal of Economic Psychology, Elsevier, vol. 33(1), pages 183-191.
  4. Hajdu, Tamás & Hajdu, Gábor, 2014. "Reduction of income inequality and subjective well-being in Europe," Economics Discussion Papers 2014-22, Kiel Institute for the World Economy.

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