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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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  • Liliana Winkelmann & Rainer Winkelmann, 2010. "Does Inequality Harm the Middle Class?," Kyklos, Wiley Blackwell, vol. 63(2), pages 301-316, May.
  • Handle: RePEc:bla:kyklos:v:63:y:2010:i:2:p:301-316
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    Cited by:

    1. Ozan Eksi & Neslihan Kaya, 2017. "Life Satisfaction and Keeping Up with Other Countries," Journal of Happiness Studies, Springer, pages 199-228.
    2. Nuno Crespo & Sandrina B. Moreira & Nadia Simoes, 2015. "An Integrated Approach for the Measurement of Inequality, Poverty, and Richness," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 62(5), pages 531-555, December.
    3. Winkelmann, Rainer, 2012. "Conspicuous consumption and satisfaction," Journal of Economic Psychology, Elsevier, vol. 33(1), pages 183-191.
    4. Pasquale Tridico, 2015. "The Rise Of Income Inequality In Oecd Countries," Departmental Working Papers of Economics - University 'Roma Tre' 0201, Department of Economics - University Roma Tre.
    5. Hajdu, Tamás & Hajdu, Gábor, 2014. "Reduction of income inequality and subjective well-being in Europe," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 8, pages 1-29.
    6. Blanchflower, David G; Oswald, Andrew, 2011. "International Happiness," CAGE Online Working Paper Series 39, Competitive Advantage in the Global Economy (CAGE).
    7. Cordero, Jose M. & Salinas-Jiménez, Javier & Salinas-Jiménez, Mª Mar, 2014. "Assessing the level of happiness across countries: A robust frontier approach," MPRA Paper 57784, University Library of Munich, Germany.
    8. repec:spr:soinre:v:132:y:2017:i:3:d:10.1007_s11205-016-1327-0 is not listed on IDEAS

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