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Contribution Details

Type Working Paper
Scope Discipline-based scholarship
Title In the Eye of the Beholder: Subjective Inequality Measures and the Demand for Redistribution
Organization Unit
Authors
  • Andreas Kuhn
Language
  • English
Institution University of Zurich
Series Name Working paper series / Institute for Empirical Research in Economics
Number No. 425
ISSN 1424-0459
Date 2009
Abstract Text This paper presents a simple conceptual framework intended for describing individuals'nsubjective evaluations of occupational wage inequality and their demand for redistribution. Most importantly, the framework explicitly allows for the distinction between individuals'nperceptions 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 governmentnintervention and their party identification. This result provides indirect evidencenon the presumed link between perceptions and beliefs on the one hand and and politicalnoutcomes on the other hand.
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