Perceiving economic inequality in everyday life decreases tolerance to inequality

Development and validation of the Multidimensional Gender Inequality Perception Scale (MuGIPS)

Perceptions of gender inequality may motivate people to take action against inequality given its negative impact on various domains of people's everyday lives. Thus, it is crucial to develop reliable measures that consider the multidimensional nature of gender inequalities. In this research, we propose and assess the psychometric properties of the Multidimensional Gender Inequality Perception Scale (MuGIPS). This is a self-reported measure of perceived gender inequality in four domains: health, violence, household work and caregiving, and public sphere and power. Exploratory and confirmatory factor analyses were conducted to test the validity and reliability of the MuGIPS with Spanish participants in three samples (N = 1733). The analyses revealed that the MuGIPS had a good internal consistency and showed four factors associated with gender inequality in the four specified domains. Moreover, scores in all the dimensions positively correlated with feminist identity and feminist ideology, as much as with some attitudinal variables. In contrast, results showed a negative correlation with system-justifying ideologies. The MuGIPS shows adequate reliability and validity for measuring the perception of gender inequality in the health, violence, household work and caregiving, and public sphere and power domains among Spanish university and general population samples.

Subjective economic inequality evokes interpersonal objectification

Interpersonal objectification, treating people as tools and neglecting their essential humanness, is a pervasive and enduring phenomenon. Across five studies (N = 1183), we examined whether subjective economic inequality increases objectification through a calculative mindset. Study 1 revealed that the perceptions of economic inequality at the national level and in daily life were positively associated with objectification. Studies 2 and 3 demonstrated a causal relationship between subjective economic inequality and objectification in a fictitious organization and society, respectively. Moreover, the effect was mediated by a calculative mindset (Studies 3-4). In addition, lowering a calculative mindset weakened the effect of subjective inequality on objectification (Study 4). Finally, increased objectification due to subjective inequality further decreased prosociality and enhanced exploitative intentions (Study 5). Taken together, our findings suggest that subjective economic inequality increases objectification, which further causes adverse interpersonal interactions.

Why are some countries rich and others poor? development and validation of the attributions for Cross-Country Inequality Scale (ACIS)

Understanding lay theories on the causes of economic inequality is the first step to comprehending why people tolerate, justify, or react against it. Accordingly, this paper aims to develop and validate with two cross-sectional studies the Attributions for Cross-Country Inequality Scale (ACIS), which assesses how people explain cross-country economic inequality-namely, the uneven distribution of income and wealth between poor and rich countries. After selecting and adapting items from existing scales of attributions for poverty and wealth, in Study 1, we tested the factorial structure of this initial pool of items in three countries with different levels of economic development and inequality, namely, Italy (n = 246), the UK (n = 248), and South Africa (n = 228). Three causal dimensions emerged from the Exploratory Factor Analysis: "rich countries" (blaming the systematic advantage of and exploitation by rich countries), "poor countries" (blaming the dispositional inadequacy and faults of poor countries), and "fate" (blaming destiny and luck). The retained items were administered in Study 2 to three new samples from Italy (n = 239), the UK (n = 249), and South Africa (n = 248). Confirmatory Factor Analysis (CFA) corroborated the factorial structure of the ACIS, and Multi-Group CFA supported configural and metric invariances of the scale across countries. In addition, we show internal consistency and construct validity of the scale: the scale correlates with relevant constructs (e.g., beliefs about cross-country inequality and ideological orientation) and attitudes toward relevant policies related to international redistribution and migration. Overall, the scale is a valid instrument to assess causal attribution for cross-national inequality and is reliable across countries. By focusing on resource distribution from an international perspective, this scale will allow researchers to broaden the discussion on economic inequality to a global level.

Measuring Subjective Inequality: Development and Validation of the Perceived Economic Inequality Scale (PEIS)

The main goal of the present research is to develop and validate the Perceived Economic Inequality Scale (PEIS), an instrument measuring individuals' perceptions of economic inequality at the national level. The study was conducted on a representative sample of the Italian population (N = 1,446, 51% women). The factorial structure of the scale was assessed through cross-validated exploratory-confirmatory factor analyses. To inspect the PEIS psychometric properties, item and correlation analyses were performed. The results showed that the PEIS is a valid and reliable unidimensional measure of perceived economic inequality at the national level. Further support of the PEIS construct validity was provided by the correlation of the scale score with the perceived wage gap and ideological beliefs like the economic system justification, social dominance orientation, meritocratic beliefs, and participants' political orientation. Crucially, multigroup confirmatory factor analysis supported configural, metric, and scalar invariances of the scale across socio-demographic groups. The PEIS allows researchers to assess the subjective component of economic inequality by also serving as a useful tool for unpacking the psychological correlates of perceived inequality.

The psychological imprint of inequality: Economic inequality shapes achievement and power values in human life

OBJECTIVE

This research investigates how economic inequality shapes basic human values across three cross-national, cross-regional, and longitudinal studies (Ntotal  = 219,697).

METHODS

Study 1 examined the relationship between objective economic inequality and values across 77 societies from all five continents (n = 170,525). Study 2 examined the relationship between objective economic inequality and values across 51 regions in the United States (n = 48,559). Study 3 used a two-year longitudinal design to examine the relationship between perceived economic inequality and values (n = 613).

RESULTS

Results from multilevel modeling and longitudinal analysis suggested that people who lived in areas with higher economic inequality and who perceived higher economic inequality were more likely to endorse achievement and power values. Moreover, people who perceived higher economic inequality were less likely to endorse benevolence values. These effects were robust in within-country tests (Studies 2 and 3) but not in the cross-country tests (Study 1) when accounting for sociodemographic characteristics.

CONCLUSIONS

Our findings suggest that economic inequality may act as an antecedent of self-enhancement values, particularly within countries. In a world of rising economic inequality, this may over time lead to an overemphasis on achievement and power which have been shown to erode social cohesion.

Wage (in)equality matters: the effect of organizational economic inequality on others' and self-ascriptions

Economic inequality has consequences at the social-psychological level, such as in the way people make inferences about their environment and other people. In the present two preregistered studies, we used a paradigm of an organizational setting to manipulate economic inequality and measured ascriptions of agentic versus communal traits to employees and the self. In Study 1 (N = 187), participants attributed more agency than communion to a middle-status employee, and more communion than agency when economic equality was salient. In Study 2 (N = 198) this finding was replicated. Further, this inequality-agency association was explained by perceptions of competitive employee relationships. Results, moreover, suggested that participants mainly attributed more communion than agency to themselves in the equality condition. We conclude that agency and communion ascriptions may be functional and thus inform about the expectations people have on the nature of social relationships in the face of economic inequality.

Inequality leads to the evolution of intolerance in reputation-based populations

This work studies the impact of economic inequality on the evolution of intolerance through a reputation-based model of indirect reciprocity. Results show that economic inequality is a powerful enhancer of intolerance, inducing the escalation of out-group discrimination even without the presence of new intolerant mutants. It also generates behavior modifications within tolerant disfavored minorities: their members either relax punishments against the uncooperative or prioritize helping the wealthy, even suffering discrimination in return. On the other hand, the redistribution of wealth is proven as a viable solution to avoid the spread of intolerance as long as it increases equality and is implemented before intolerance permeates part of the population.

How living in economically unequal societies shapes our minds and our social lives

In recent decades, the economies of many countries have produced increasingly unequal outcomes for the rich and poor. This economic trend has attracted interest from members of the media, public and political classes as well as researchers who are interested in its societal implications. While this research has traditionally been the purview of economists and sociologists, there has been a burgeoning growth in research that has sought to understand the psychology of economic inequality. In this review, we summarize this work, focusing on two major themes: (1) how people perceive the scale of economic inequality and appraise its significance, and (2) how living in an economically unequal environment shapes people's social lives. Together, this work affirms claims that economic inequality is 'the defining issue of our time' (Obama, 2013) with a great deal of destructive potential. We identify important questions that await further research attention.

The psychology of income wealth threshold estimations: A registered report

How do people estimate the income that is needed to be rich? Two correlative survey studies (Study 1 and 2, N = 568) and one registered experimental study (Study 3, N = 500) examined the cognitive mechanisms that are used to derive an answer to this question. We tested whether individuals use their personal income (PI) as a self-generated anchor to derive an estimate of the income needed to be rich (= income wealth threshold estimation, IWTE). On a bivariate level, we found the expected positive relationship between one's PI and IWTE and, in line with previous findings, we found that people do not consider themselves rich. Furthermore, we predicted that individuals additionally use information about their social status within their social circles to make an IWTE. The findings from study 2 support this notion and show that only self-reported high-income individuals show different IWTEs depending on relative social status: Individuals in this group who self-reported a high status produced higher IWTEs than individuals who self-reported low status. The registered experimental study could not replicate this pattern robustly, although the results trended non-significantly in the same direction. Together, the findings revealed that the income of individuals as well as the social environment are used as sources of information to make IWTE judgements, although they are likely not the only important predictors.

Tax the élites! The role of economic inequality and conspiracy beliefs on attitudes towards taxes and redistribution intentions

Taxation is one of the most widely acknowledged strategies to reduce inequality, particularly if based on progressivity. In a high-powered sample study (N = 2119) we investigated economic inequality and conspiracy beliefs as two key predictors of tax attitude and support for progressive taxation. We found that participants in the high economic inequality condition had lower levels of tax compliance and higher levels of conspiracy beliefs and support for progressive taxation. Furthermore, the effect of the experimental condition on tax compliance was mediated by conspiracy beliefs. Finally, conspiracy belief scores were positively associated with support for progressive taxation. Our results provide evidence that attitudes towards taxation are not monolithic but change considering the aims and targets of specific taxes. Indeed, while the perception of economic inequality prompts the desire for equal redistribution, it also fosters conspiracy narratives that undermine compliance with taxes.

Perceived economic inequality enlarges the perceived humanity gap between low- and high-socioeconomic status groups

In this paper, we analyze the influence of the perceived level of economic inequality in daily life on people's recognition of the perceived humanity gap between low- and high-socioeconomic groups within society. To achieve this purpose, in Studies 1A-B, we analyzed the relationship between economic inequality and the humanity gap. In Studies 2A-B, we manipulated the level of inequality (low vs. high) to identify differences in the humanity gap. Results indicated that higher perceptions of economic inequality lead individuals to recognize a wider humanity gap between low- and high-socioeconomic groups in society. Implications are discussed.

Not all poor are equal: the perpetuation of poverty through blaming those who have been poor all their lives

The economic crisis of 2008 severely affected the welfare states. As the economic situation of a country worsens, the resources that the public administration can devote to improve the situation of the people also decrease, endangering the advancement of those in a disadvantaged situation. People who have always lived in poverty, besides having their opportunities reduced, also face negative public views that affect the perceived legitimacy of such public aid, which can in turn be a mechanism for perpetuating their situation. Two studies (N = 252 and N = 266) analyse how a person in persistent poverty is perceived compared to a person in poverty due to the crisis-a circumstantial poverty. We also study some feasible mechanisms underlying this different perception, as well as their effects on attitudes toward social protection policies. In Study 1, results indicated that people showed more favourable attitudes toward social protection policies when they perceived someone in poverty due to the crisis, compared to the target who had been in poverty all his/her life. Individualistic attributions for poverty mediated this effect: when people think of someone in persistent poverty, they make more individualistic attributions concerning their situation, which leads to worse attitudes toward social protection policies. Identification with the group moderates this relation. Furthermore, Study 2 showed that participants perceive people who are in poverty because of economic crisis as more deserving of help than people who have always been poor. Some theoretical and practical implications for intergroup relations and public policy are discussed.

Supplementary Information

The online version contains supplementary material available at 10.1007/s12144-022-03804-6.

Perceived Economic Inequality Measures and Their Association With Objective Inequality and Redistributive Preferences

Abstract. Perceptions of economic inequality (PEI) play a central role in people’s responses to inequality. We aim to examine the consistency between different PEI measures (income gaps, diagrammatic figures, experienced downward and upward disparities), their relationship with objective inequality, and their association with redistributive preferences. Using data from the International Social Survey Programme 2019 ( N = 34,387, 22 countries), we performed multilevel regression analyses and found that PEI indicators were weakly and positively correlated, suggesting that they represent different dimensions of the same construct. Furthermore, objective inequality was not related to PEI measures. Finally, all PEI measures were positively associated with support for redistribution, except for experienced upward inequality. We discuss the multidimensional nature of PEI and its implications on redistributive preferences.

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

Modern societies are characterized by economic inequality. Redistributive policies are one of the means to reduce it. We argue that perceived economic inequality in everyday life and intolerance of it are central factors to enhance positive attitudes toward redistribution. To test it, we conducted a four-wave longitudinal panel study in Chile with a sample of 1221 college students (at T1 - baseline, 960 at T2, 926 at T3, and 787 at T4; Mage = 18.89). As expected, a cross-lagged longitudinal analysis controlled by household income confirmed a positive relationship between perceived economic inequality in everyday life and intolerance of inequality, which in turn was positively associated with support for redistributive policies. These results were stable and consistent over time, supporting the idea that perceived economic inequality in everyday life enhances positive attitudes toward redistribution by increasing intolerance of it. Results highlight the important role played by perceived inequality in everyday life.

Framing, Context, and the Misperception of Black–White Wealth Inequality

In one large-scale experiment using U.S. respondents on Mechanical Turk ( N = 2,899), we studied how subtle differences in framing and context impacted estimates of the Black–White wealth gap. Across our 10 different experimental manipulations of framing and context, respondents consistently overestimated Black family wealth relative to White wealth. There was also substantial variation in the magnitude of these wealth estimates, which ranged from a low of 35 to a high of over 60 percentage points across the conditions. Overestimates were largest when respondents were asked about the Black–White wealth gap at both past and present time points and closest to accuracy when respondents used images as pictorial comparisons for White and Black wealth. Overall, while framing and context certainly affect the magnitude of this misperception, the tendency to overestimate racial wealth equality is extremely robust.

What predicts perceived economic inequality? The roles of actual inequality, system justification, and fairness considerations

Past studies have mostly focused on investigating actual economic inequality with less work devoted to understanding perceived economic inequality and its antecedents. However, numerous studies have shown that perceived inequality is a strong predictor of psychological, political, and social outcomes and hence is an important outcome in and of itself. This paper aims to identify the socioecological (i.e., actual inequality) and psychological (legitimation and fairness considerations) antecedents of perceived economic inequality. We hypothesized that individuals who legitimized income inequality would perceive less inequality, whereas individuals who experienced unfairness engendered by income inequality would perceive more inequality. We utilized a nationally representative sample in China (N = 33,600 respondents nested within 25 provinces) and conducted multilevel longitudinal analyses to test our hypotheses. In line with our predictions, we found that legitimation of inequality was associated with less perceived inequality six years later, whereas unfairness was associated with more perceived inequality six years later. In addition, we found that in more unequal areas, people perceived less income inequality. These longitudinal effects were robust when controlling for prior years of perceived inequality, economic development, and sociodemographic factors. Findings have implications for system justification and economic inequality theories.

How Fair is Economic Inequality? Belief in a Just World and the Legitimation of Economic Disparities in 27 European Countries

This article aims to examine the role of Belief in a Just World (BJW) in the legitimation of economic inequality. Using data from 27 European countries (N=47,086), we conducted multilevel analyses and found that BJW positively predicted the legitimation of economic inequality, measured by three indicators: the perceived fairness of the overall wealth inequality, and the fairness of the earnings made by the Top 10% and the Bottom 10% of society. These results persisted after controlling for individual- and country-level variables. Moreover, the BJW effect was stronger on the legitimation of the Bottom 10% incomes, compared to the legitimation of the Top 10%. We also found that economic inequality at the country-level reduced the BJW effect on legitimation of inequality. Finally, BJW displayed a negative indirect effect on support for redistribution, via the legitimation of economic inequalities.