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The emerging aversion to inequality - Evidence from subjective data

Author

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  • Grosfeld, Irena
  • Senik, Claudia

Abstract

This paper provides evidence of the changing attitudes to inequality during transition to the market in Poland. Using repeated cross-sections of the population, it identifies a structural break in the relationship between income inequality and satisfaction. Whereas in the first stage of the transition process, an increase in income inequality was interpreted by the population as a positive signal of wider opportunities, later in the transition period increased inequality became a factor in dissatisfaction with the country’s economic situation. This was accompanied by increasing public sentiment that the process of income distribution is flawed and corrupt.

Suggested Citation

  • Grosfeld, Irena & Senik, Claudia, 2010. "The emerging aversion to inequality - Evidence from subjective data," CEPREMAP Working Papers (Docweb) 1006, CEPREMAP.
  • Handle: RePEc:cpm:docweb:1006
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    File URL: http://www.cepremap.fr/depot/docweb/docweb1006.pdf
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    References listed on IDEAS

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    1. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 95-144, March.
    2. Garner, Thesia I & Terrell, Katherine, 1998. "A Gini Decomposition Analysis of Inequality in the Czech and Slovak Republics during the Transition," CEPR Discussion Papers 1897, C.E.P.R. Discussion Papers.
    3. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, World Bank Group, vol. 10(3), pages 565-591, September.
    4. Richard A. Easterlin, 2008. "Lost in Transition: Life Satisfaction on the Road to Capitalism," SOEPpapers on Multidisciplinary Panel Data Research 94, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Easterlin, Richard A., 2008. "Lost in Transition: Life Satisfaction on the Road to Capitalism," IZA Discussion Papers 3409, Institute of Labor Economics (IZA).
    6. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May.
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    Citations

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    Cited by:

    1. Andrew E. Clark & Conchita D'Ambrosio, 2018. "Economic inequality and subjective well-being across the world," WIDER Working Paper Series wp-2018-170, World Institute for Development Economic Research (UNU-WIDER).
    2. Pawel Bukowski & Filip Novokmet, 2019. "Between Communism and Capitalism: Long-Term Inequality in Poland, 1892- 2015," World Inequality Lab Working Papers hal-02876995, HAL.
    3. Lewis Davis, 2019. "Growth, Inequality and Tunnel Effects: A Formal Mode," Journal of Happiness Studies, Springer, vol. 20(4), pages 1103-1119, April.
    4. Andrew E. Clark & Conchita D'Ambrosio, 2017. "Living conditions and well-being: Evidence from African countries," WIDER Working Paper Series wp-2017-209, World Institute for Development Economic Research (UNU-WIDER).
    5. Victoria Reyes-García & Arild Angelsen & Gerald E. Shively & Dmitrij Minkin, 2019. "Does Income Inequality Influence Subjective Wellbeing? Evidence from 21 Developing Countries," Journal of Happiness Studies, Springer, vol. 20(4), pages 1197-1215, April.
    6. Woo Chang Kang & Jae Seung Lee & BK Song, 2020. "Envy and Pride: How Economic Inequality Deepens Happiness Inequality in South Korea," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(2), pages 617-637, July.
    7. Nina Lopez Uroz, 2020. "Populism Amidst Prosperity: Poland's Growth Model and its Socio-Political Outcomes," LEQS – LSE 'Europe in Question' Discussion Paper Series 159, European Institute, LSE.
    8. Lewis Davis & Stephen Wu, 2020. "The Taste for Status in International Comparison," Journal of Happiness Studies, Springer, vol. 21(6), pages 2237-2256, August.
    9. Pawel Bukowski & Filip Novokmet, 2019. "Between Communism and Capitalism: Long-Term Inequality in Poland, 1892- 2015," Working Papers hal-02876995, HAL.

    More about this item

    Keywords

    Inequality; Subjective Well-being; Growth; Breakpoint; Transition;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
    • P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy

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