Views on income inequality: determinants and consequences of public perceptions and attitudes
Despite rising within-country income disparities and widespread public concern, the demand for redistribution remains limited. This paradox highlights the complexity and importance of subjective views on inequality, including what individuals perceive, believe, and prefer, in shaping economic behavior and political choices.
This dissertation investigates the determinants and consequences of these views through three empirical studies.Chapter 2 moves beyond the economic and political implications of inequality to examine its personal cost for subjective well-being. Specifically, it investigates the relationship between perceived inequality and life satisfaction at the individual level across 33 primarily transition countries. The chapter provides robust evidence that perceptions of inequality influence life satisfaction above and beyond objective measures.Chapter 3 shifts focus to the origins of inequality views. Using a globally representative dataset, it demonstrates that early-life adversities foster a lasting demand for state protection in high-income countries. However, this relationship remains absent in low- and middle-income countries. This contrast underscores the context-dependence of political preference formation.Finally, Chapter 4 examines the consequences of implementing inequality-affecting policy on public sentiment. Specifically, it assesses how the introduction or abolition of flat tax regimes in four post-socialist countries shapes individuals' expectations about their personal conditions and the national economy.
This study shows that a complex interplay of material self-interest and ideological filters determines these outcomes, providing novel evidence on the drivers of policy acceptability.Ultimately, this thesis confirms that deciphering the subjective dimensions of economic disparity is a prerequisite for designing effective redistributive policies and securing necessary public support.