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Misperceptions and mismeasurements: An analysis of subjective economic inequality

Author

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  • Aboozar Hadavand

    (School of Public Health, Johns Hopkins University)

Abstract

This paper focuses on an important aspect of economic inequality – the question of how people perceive inequality and whether these perceptions deviate in any meaningful way from statistical measures of inequality. Using a novel approach I investigate whether individuals across different countries are able to correctly estimate the shape of income distribution of the country where they reside. I find that perceptions of inequality are frequently shaped by reference groups such as those formed according to educational attainment, age, and gender.

Suggested Citation

  • Aboozar Hadavand, 2017. "Misperceptions and mismeasurements: An analysis of subjective economic inequality," Working Papers 449, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2017-449
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2017-449.pdf
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    References listed on IDEAS

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    7. Kimmo Eriksson & Brent Simpson, 2012. "What do Americans know about inequality? It depends on how you ask them," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 7(6), pages 741-745, November.
    8. Aboozar Hadavand, 2017. "Anatomy of Income Inequality in the United States: 1979-2013," LIS Working papers 686, LIS Cross-National Data Center in Luxembourg.
    9. Sen, Amartya, 2000. "Social justice and the distribution of income," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 1, pages 59-85, Elsevier.
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    More about this item

    Keywords

    Income inequality; perception; reference groups;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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