Your place in the world relative income and global inequality Dietmar Fehr, Johanna Mollerstrom, Ricardo Perez-Truglia
By: Fehr, Dietmar
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Contributor(s): Mollerstrom, Johanna | Perez Truglia, Ricardo.
Material type: 
ArticleSubject(s): RIQUEZA | RENTA | DISTRIBUCION | DESIGUALDAD | IMPUESTOS | POLITICAS PUBLICAS | OPINION PUBLICA | ALEMANIA
In:
American Economic Journal : Economic Policy v. 14, n. 4, November 2022, p. 232-268Summary: Although there is abundant evidence on individual preferences for policies that reduce national inequality, there is very little evidence on preferences for policies addressing global inequality. To investigate the latter, we conducted a two-year, face-to-face survey experiment on a representative sample of Germans. We measure how individuals form perceptions of their ranks in the national and global income distributions and how these perceptions relate to their national and global policy preferences. We find that Germans systematically underestimate their true place in the world's income distribution but that correcting those misperceptions does not affect their support for policies related to global inequality.
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| OP 2135/2022/3-1 Gini and optimal income taxation by rank | OP 2135/2022/4 American Economic Journal : Economic Policy | OP 2135/2022/4-1 Behavioral responses to wealth taxes | OP 2135/2022/4-2 Your place in the world | OP 2135/2022/4-3 Multinationals' sales and profit shifting in tax havens | OP 2135/2022/4-4 Health care rationing in public insurance programs | OP 2135/2023/1 American Economic Journal : Economic Policy |
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Although there is abundant evidence on individual preferences for policies that reduce national inequality, there is very little evidence on preferences for policies addressing global inequality. To investigate the latter, we conducted a two-year, face-to-face survey experiment on a representative sample of Germans. We measure how individuals form perceptions of their ranks in the national and global income distributions and how these perceptions relate to their national and global policy preferences. We find that Germans systematically underestimate their true place in the world's income distribution but that correcting those misperceptions does not affect their support for policies related to global inequality.
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