Polarized perceptions, polarized preferences? Understanding the relationship between inequality and preferences for redistribution

Abstract

When studying the relationship between inequality and preferences for redistribution, it is often assumed – either implicitly or explicitly – that individuals are informed about actual levels of inequality. Newer research, however, challenges this assumption and shows that perceived inequality differs from actual inequality. Empirically, these inequality perceptions are rather good predictors for preferences for redistribution. This article argues that individuals answer the standard question for measuring preferences for redistribution based on their inequality perceptions. I conduct a simple regression analysis based on two waves of the ISSP (1999 and 2009) and show that (1) inequality perceptions are systematically linked to socio-economic variables as well as to ideological beliefs rather than to actual inequality. Then, I disaggregate the variance in inequality perceptions to a part which is explainable by socio-economic and ideological determinants (the common control variables for explaining preferences for redistribution) and an unexplained part. I show that (2) the explained as well as the unexplained variance part is associated with preferences for redistribution. I argue that this finding makes considering inequality perceptions practically relevant since standard control variables do not fully account for variation in perceived inequality.

Changing attitudes toward redistribution: The role of perceived economic inequality in everyday life and intolerance of inequality

“…Perceived economic inequality in daily life leads to intolerance of inequity and support for wealth redistribution; yet, the support of redistributive policies also causes intolerance of inequality and a greater perception of economic inequality in daily life. This lines up with previous research suggesting the possible bidirectional relationship mentioned above (Bobzien, 2019;Castillo et al, 2019). The evidence provided in the present research offers insight into this recursive dynamic approach.…”

Perceiving economic inequality in everyday life decreases tolerance to inequality

“…The literature posits that the subjectively perceived economic inequality produces greater psychosocial impact on attitudes toward inequality than objective economic inequality (Bobzien, 2019;Choi, 2019;Evans & Kelley, 2018;Loveless, 2013). However, the findings regarding the relationship between perceiving economic inequality, tolerance to inequality, and support for redistributive policies are inconclusive (García-Sánchez et al, 2018b;Wright, 2018).…”

Redistributive preferences: Why actual income is ultimately more important than perceived income

“…One important criticism concerns its micro-foundations: there appears to be widespread misperceptions of income inequality. Thus, many recent studies claim that subjective perceptions are a better predictor for redistribution preferences than actual objective conditions (Becker, 2020; Bobzien, 2020; Bussolo et al, 2019; Cansunar, 2021; Choi, 2019; Engelhardt and Wagener, 2014; Fatke, 2018; Gründler and Köllner, 2017; Kuhn, 2020). Gimpelson and Treisman (2018: 27) even suggest that ‘most theories about political effects of inequality need to be reframed as theories about effects of perceived inequality’.…”