Misperceptions and mismeasurements
Working Paper 2017-449
This paper focuses on an important aspect of economic inequality – the question of how people perceive inequality and whether these perceptions deviate in any meaningful way from statistical measures of inequality. Using a novel approach I investigate whether individuals across different countries are able to correctly estimate the shape of income distribution of the country where they reside. I find that perceptions of inequality are frequently shaped by reference groups such
Authors: Aboozar Hadavand.
Keywords: Income inequality, perception, reference groups
JEL: D31, D83, D63, I30