Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/240434 
Authors: 
Year of Publication: 
2021
Series/Report no.: 
GLO Discussion Paper No. 926
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
This paper analyzes how perceived income inequality is associated with subjective well-being. Using four waves of the "Social Inequality" module of the International Social Survey Programme, I show that the higher the level of perceived income inequality is, the lower the individual's perception of her social standing, even if objective income inequality and preferences for the legitimate level of income inequality are controlled for. The results are robust to the measure of perceived inequality and the choice of the outcome variable. The analysis also provides evidence that the estimated association is weaker for individuals with higher income, higher education, and countries without postcommunist history. Overall, the results suggest that not only do objective inequality and perception of fairness have consequences regarding subjective well-being but also the perceived level of income inequality itself.
Subjects: 
inequality perception
income inequality
subjective social status
subjective well-being
JEL: 
D31
D63
I31
J31
Document Type: 
Working Paper

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