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On the relationship of perceived inequality and policy preferences

Author

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  • Abraham Aldama
  • Cristina Bicchieri
  • Jana Freundt

Abstract

This paper investigates the determinants of individuals’ support for redistribution in the US from a behavioral perspective. In a comprehensive survey experiment with a large sample of US Americans, we identify participants’ (mis-)perceptions about income inequality together with their policy preferences and fairness views. US Americans underestimate the income earned by people at the bottom of the distribution and overestimate the income of top earners. There is no evidence for a causal effect of perceived inequality on policy views or political behavior. We find precisely estimated and robust null effects across different types of inequality beliefs and across different measures of support for redistribution. The null effect holds for different income groups and party affiliations, as well as for participants with different levels of trust in government and of perceived autonomy. Taken together, our results do not offer support for information about the extent of inequality being able to increase support for redistributive policies.

Suggested Citation

  • Abraham Aldama & Cristina Bicchieri & Jana Freundt, 2026. "On the relationship of perceived inequality and policy preferences," PLOS ONE, Public Library of Science, vol. 21(8), pages 1-21, August.
    • Handle: RePEc:plo:pone00:0341298
    DOI: 10.1371/journal.pone.0341298
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    References listed on IDEAS

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    1. Sonja Settele, 2022. "How Do Beliefs about the Gender Wage Gap Affect the Demand for Public Policy?," American Economic Journal: Economic Policy, American Economic Association, vol. 14(2), pages 475-508, May.
    2. Emmanuel Saez & Gabriel Zucman, 2020. "Trends in US Income and Wealth Inequality: Revising After the Revisionists," Working Papers halshs-03022102, HAL.
    3. Alexander W. Cappelen & Bertil Tungodden (ed.), 2019. "The Economics of Fairness," Books, Edward Elgar Publishing, number 17123.
    4. Sonja Settele, 2022. "How Do Beliefs About the Gender Wage Gap Affect the Demand for Public Policy?," ECONtribute Discussion Papers Series 179, University of Bonn and University of Cologne, Germany.
    5. Luiz de Mello & Erwin R. Tiongson, 2006. "Income Inequality and Redistributive Government Spending," Public Finance Review, , vol. 34(3), pages 282-305, May.
    6. Lupu, Noam & Pontusson, Jonas, 2011. "The Structure of Inequality and the Politics of Redistribution," American Political Science Review, Cambridge University Press, vol. 105(2), pages 316-336, May.
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