In the Eye of the Beholder: Subjective Inequality Measures and the Demand for Redistribution

61 Pages Posted: 18 Aug 2009

See all articles by Andreas Kuhn

Andreas Kuhn

University of Zurich; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Abstract

This paper presents a simple conceptual framework intended for describing individuals' subjective evaluations of occupational wage inequality and their demand for redistribution. Most importantly, the framework explicitly allows for the distinction between individuals' perceptions 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 government intervention and their party identification. This result provides indirect evidence on the presumed link between perceptions and beliefs on the one hand and political outcomes on the other hand.

Keywords: subjective inequality measures, demand for redistribution, distributive justice, party identification, support for the welfare state

JEL Classification: D3, D63, H1

Suggested Citation

Kuhn, Andreas, In the Eye of the Beholder: Subjective Inequality Measures and the Demand for Redistribution. IZA Discussion Paper No. 4360, Available at SSRN: https://ssrn.com/abstract=1455522

Andreas Kuhn (Contact Author)

University of Zurich ( email )

Bluemlisalpstrasse 10
Zurich, 8006
Switzerland

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
62
Abstract Views
433
rank
326,138
PlumX Metrics