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In the eye of the beholder: subjective inequality measures and the demand for redistribution

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Author Info
Andreas Kuhn
Abstract

This paper presents a simple conceptual framework intended for describing individuals' subjective evaluations of occupational wage inequality and their demand for redistribution. Most importantly, the framework explicitly allows for the distinction between individuals' perceptions and their normative beliefs. I illustrate the framework using Swiss survey data from the International Social Survey Program. While most individuals accept quite large wage differentials across occupations, they also prefer a lower level of overall wage inequality than what they perceive to exist. Consistent with previous evidence, the empirical analysis also shows that financial self-interest, social norms about distributive justice and perceptions of how wages are determined in reality all simultaneously influence the demand for redistribution. Finally, I show that subjective inequality measures and the demand for redistribution are substantially significant predictors of both individuals' support for government intervention and their party identification. This result provides indirect evidence on the presumed link between perceptions and beliefs on the one hand and and political outcomes on the other hand.

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Paper provided by Institute for Empirical Research in Economics - IEW in its series IEW - Working Papers with number iewwp425.

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Date of creation: Aug 2009
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Handle: RePEc:zur:iewwpx:425

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Related research
Keywords: Subjective inequality measures; demand for redistribution; distributive justice; party identification; support for the welfare state;

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Find related papers by JEL classification:
D3 - Microeconomics - - Distribution
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
H1 - Public Economics - - Structure and Scope of Government

This paper has been announced in the following NEP Reports:

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This page was last updated on 2009-11-19.

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