scholarly journals People weigh Salaries More than Ratios in Judgments of Income Inequality, Fairness, and Demands for Redistribution

2019 ◽  
Author(s):  
Ignazio Ziano ◽  
Christophe Lembregts ◽  
Mario Pandelaere
Keyword(s):  
Income Inequality ◽  
Economic Inequality ◽  
Employee Compensation ◽  
Total N ◽  
Psychological Understanding ◽  
Fairness Judgments ◽  
Practical Implications ◽  
Joint Evaluation

Five experiments (total n = 2422, with U.S. American and French participants, four preregistered) show that people are more likely to use median salaries rather than CEO-median employee compensation ratios when making inequality and fairness judgments based on company compensation data. In separate evaluation of companies, we find no significant impact of compensation ratios, which express objective levels of income inequality, but a significant impact of median salaries. In joint evaluation, ratios have an impact, but median salaries have a bigger impact. Our results point to a difference between normative and actual inequality indicators: people do not perceive inequality based on a normative indicator of inequality (compensation ratios), but rather use representative workers’ salaries, and believe lower representative wages are connected to higher inequality. We discuss theoretical implications for the psychological understanding of economic inequality, and practical implications for the regulation of the presentation of compensation data.

scholarly journals Using Self-Generated Priors in Division Leads to Biased Consumer Judgments

2021 ◽  
Author(s):  
Ignazio Ziano ◽  
Daniel Villanova
Keyword(s):  
Income Inequality ◽  
Willingness To Pay ◽  
Numerical Cognition ◽  
Product Choice ◽  
Product Attribute ◽  
Total N ◽  
Anchoring And Adjustment ◽  
Attribute Information ◽  
A Company ◽  
Practical Implications

Consumers often have to make divisions to evaluate attributes. In six experiments (total N = 3296, four preregistered), this research shows that consumers may rely on their prior for the attribute to generate an estimate rather than divide following a normative procedure. That is, consumers will recruit typical values of the attribute from memory and use them when dividing. This process influences consumers’ judgments. When the actual attribute value is above the attribute prior, it tends to be underestimated, and when it is below the attribute prior, it tends to be overestimated. When the attribute is a product attribute (such the miles-per-gallon a car can drive), this decreases its attractiveness. When the attribute is a company-wide attribute (such as median wage), this intuitive approach results in corresponding changes in company evaluations, willingness-to-pay, and product choice. The authors discuss theoretical implications for consumers’ numerical cognition, anchoring and adjustment, and perceptions of income inequality. Practical implications for the communication and disclosure of product attribute information and income inequality for managers and policymakers are also discussed.

scholarly journals Psychological Mindedness and Procrastination among University Students

2017 ◽  
Vol 4 (2) ◽  
Author(s):  
Priyanka Pathak ◽  
Prof. Shobhna Joshi
Keyword(s):  
Gender Differences ◽  
University Students ◽  
Personal Data ◽  
Data Sheet ◽  
The Self ◽  
Psychological Mindedness ◽  
Psychological Understanding ◽  
New Ideas ◽  
The Relationship ◽  
Practical Implications

This study was conducted to investigate the relationship between psychological mindedness and procrastination among university students and to determine gender differences in psychological mindedness and procrastination. The sample consisted of 200 university students (100 male and 100 female) aged 18 to 25 years from different faculties of Banaras Hindu University, Varanasi. Psychological mindedness scale (PMS) by Conte et al., (1986) and Tuckman procrastination scale by Tuckman (1991) along with personal data sheet were used to assess the level of  psychological mindedness and procrastination among university students. Psychological mindedness is the ability to psychological understanding of the self and other’s behaviour, thought and feelings. It is openness to new ideas whereas procrastination is known as the irrational tendency of delaying the tasks until an individual experiences discomfort (Solomon & Rothblum 1984). Results showed that there were no significant gender differences in psychological mindedness and procrastination. Correlational analysis indicated that the psychological mindedness was significantly negatively correlated with the level of procrastination; i.e., the higher the level of psychological mindedness the lower the level of procrastination. Thus, it can be concluded that psychological mindedness play an important role in procrastination among university students. The theoretical and practical implications of these findings are discussed.

Income and Wealth Inequality

2021 ◽  
Author(s):  
Laurel Sariscsany
Keyword(s):  
Social Work ◽  
Income Inequality ◽  
Social Workers ◽  
Economic Inequality ◽  
Wealth Inequality ◽  
People Of Color ◽  
Research Practice ◽  
Grand Challenges ◽  
Critical Issues

Reversing extreme economic inequality is one of the grand challenges for social work, identified as one of the most critical issues in the field. Two key types of economic inequality, income and wealth inequality are described. Although, wealth and income inequality are often discussed synonymously they have differing levels of inequality and impact clients’ lives differently. Perhaps more importantly, as this article describes, solving income and wealth inequality require differing solutions. The article further explores the specific income and wealth inequality experienced by women and people of color, due in part to discrimination. Lastly, the efforts of social workers to address economic inequality through research, practice, and advocacy are described.

Economic Inequality and Social Entrepreneurship

2017 ◽  
Vol 57 (6) ◽  
pp. 1150-1190 ◽  
Author(s):  
Saurav Pathak ◽  
Etayankara Muralidharan
Keyword(s):  
Income Inequality ◽  
Low Income ◽  
Social Entrepreneurship ◽  
Economic Inequality ◽  
Future Research ◽  
Income Mobility ◽  
Global Competitiveness ◽  
Individual Level ◽  
Country Level ◽  
Level Data

This article explores the extent to which income inequality and income mobility—both considered indicators of economic inequality and conditions of formal regulatory institutions (government activism)—facilitate or constrain the emergence of social entrepreneurship. Using 77,983 individual-level responses obtained from the Global Entrepreneurship Monitor (GEM) survey of 26 countries, and supplementing with country-level data obtained from the Global Competitiveness Report of the World Economic Forum, our results from multilevel analyses demonstrate that country-level income inequality increases the likelihood of individual-level engagement in social entrepreneurship, while income mobility decreases this likelihood. Further, income mobility negatively moderates the influence of income inequality on social entrepreneurship, such that the condition of low income mobility and high income inequality is a stronger predictor of social entrepreneurship. We discuss implications and limitations of our study, and we suggest avenues for future research.

The shape of income distribution and decomposition of the changes in income inequality in India

2019 ◽  
Vol 46 (3) ◽  
pp. 760-776 ◽  
Author(s):  
Aswini Kumar Mishra ◽  
Anil Kumar ◽  
Abhishek Sinha
Keyword(s):  
Income Inequality ◽  
Research Work ◽  
Income Growth ◽  
Analysis Tool ◽  
Distribution Analysis ◽  
Content Type ◽  
Income Distributions ◽  
The Rich ◽  
New Evidence ◽  
Practical Implications

Purpose Though Indian economy since 1980s has expanded very rapidly, yet the benefits of growth remain very unequally distributed. The purpose of this paper is to provide new evidence about the shape, intensity and decomposition of inequality change between 2005 and 2012. The authors find that Gini, as a measure of income inequality, has increased irrespective of geographic regions. Design/methodology/approach Based on a recent distribution analysis tool, “ABG,” the paper focuses on local inequality, and summarizes the shape of inequality in terms of three inequality parameters (α, β and γ) to examine how the income distributions have changed over time. Here, the central coefficient (α) measures inequality at the median level, with adjustment parameters at the top (β) and bottom (γ). Findings The results reveal that at the middle of distribution (α), there is almost the same inequality in both the periods, but the coefficients on the curvature parameters β and γ show that there is increasing inequality in the subsequent period. Finally, an analysis of decomposition of inequality change suggests that though income growth was progressive, however, this equalizing effect was more than offset by the disequalizing effect of income reranking. Research limitations/implications This paper shows how it can be possible both for “the poor” to fare badly relatively to “the rich” and for income growth to be pro-poor. Practical implications This paper stresses the significance of inequality reduction. Social implications Inequality reduction is very much imperative in ending poverty and boosting shared prosperity. Originality/value Perhaps, this research work is first of its kind to examine the shape and decomposition of change in income inequality in India in recent years.

From Income Inequality to Economic Inequality

1997 ◽  
Vol 64 (2) ◽  
pp. 383 ◽  
Author(s):  
Amartya K. Sen
Keyword(s):  
Income Inequality ◽  
Economic Inequality

The sanitation access to developing Asia: India's performance over 2001 and 2011

2014 ◽  
Vol 11 (2) ◽  
pp. 93-101 ◽  
Author(s):  
Moazzem Hossain ◽  
Paul Howard
Keyword(s):  
Regression Analysis ◽  
Income Inequality ◽  
National Level ◽  
Secondary Data ◽  
Working Hours ◽  
Policy Formation ◽  
Social Implications ◽  
Content Type ◽  
Rural And Urban ◽  
Practical Implications

Purpose – The purpose of this paper is to shed light on India's performance in sanitation over the last decade as it strives to meet the Millennium Development Goal target. Design/methodology/approach – In doing so, both qualitative and quantitative analyses are employed. The latter method includes a regression analysis. Income and income inequality variables have been included in the analysis. Findings – Whilst India has made progress towards achieving access to sanitation for its people, the nation continues to perform relatively poorly to its neighbours and on a comparative global basis. At the national level, substantial rural-urban and income disparities are linked to a reduced level of sanitation access. Both forms of analysis support the view that income inequality in India is directly related to a lack of sanitation facilities. Research limitations/implications – The study is based on secondary data gathered from WHO and UNICEF sources. These are national data gathered by these agencies in two periods. These are aggregated data. Practical implications – The study has major practical implications in policy formation in the area of sanitation access to both rural and urban India. The state level data analysed by the study will also be useful to make policies at disaggregated level. India, indeed, needs to improve the conditions on an urgent basis. Even in South Asia standard, this nation is behind from almost all other nations of the region. Social implications – The social implications are to make people particularly poor aware about the sanitation issue lack of which contributes to health hazards and gestro condition for children and old. The sanitation related diseases contribute to huge loss of working hours in both rural and urban communities. Originality/value – The study contributes original ideas and demonstrates with a simple regression analysis how sanitation depends on income and income inequality of the poor.

scholarly journals Unequal Unification? Income Inequality and Unification in 19th Century Italy and Germany

2021 ◽  
Author(s):  
Philipp Emanuel Erfurth
Keyword(s):  
Income Inequality ◽  
19Th Century ◽  
Economic Inequality ◽  
Economic Research ◽  
Primary Data ◽  
Working Paper ◽  
Policy Choices ◽  
German States ◽  
Institutional Structures ◽  
Comprehensive Study

This research provides a comprehensive study of the linkages between unification and related policy choices on income inequality by examining the cases of Italy and Germany in the context of 19th century unification. To conduct this analysis, the study puts forward estimates of income inequality for pre-unification German states using social tables, compiled using primary data, some of which have thus far been unexplored in economic research. The findings suggest that differences in inequality between regions were more pronounced in Italy than in Germany. In seeking explanations for these trends, the study explores linkages between institutional structures, governance frameworks and inequality, connecting the research on federalism with the literature on inequality extraction. (Stone Center on Socio-Economic Inequality Working Paper)

scholarly journals Income Inequality and Tax Tools to Reduce it in the South-East Asian Countries

2021 ◽  
Vol 1 (1(50)) ◽  
pp. 55-65
Author(s):  
Anna P. Muranova ◽  
Keyword(s):  
Twentieth Century ◽  
Income Inequality ◽  
Southeast Asia ◽  
East Asian ◽  
Economic Inequality ◽  
Wealth Inequality ◽  
Inequality Of Opportunity ◽  
Asian Countries ◽  
Inequality Problem ◽  
The World

Since the end of the twentieth century. In most countries of the world, there is an increase in economic inequality in its various forms - income inequality, wealth inequality and inequality of opportunity. This article examines aspects of the inequality problem in Southeast Asia, such as income inequality at the intercountry and intracountry levels and the fiscal instruments used by governments to reduce inequality.

scholarly journals ‘Don’t play if you can’t win’: does economic inequality undermine political equality?

2019 ◽  
Vol 11 (3) ◽  
pp. 395-413 ◽  
Author(s):  
Armin Schäfer ◽  
Hanna Schwander
Keyword(s):  
Income Inequality ◽  
Voter Turnout ◽  
Economic Inequality ◽  
Political Equality ◽  
Local Data ◽  
Cross Sectional ◽  
Time Period ◽  
The Impact ◽  
The Relationship ◽  
Selection Of

AbstractIn this paper, we investigate whether income inequality negatively affects voter turnout. Despite some progress, the answer to this question is still debated due to methodological disagreements and differences in the selection of countries and time periods. We contribute to this debate by triangulating data and methods. More specifically, we use three kinds of data to resolve the question: first, we use cross-sectional aggregate data of 21 OECD countries in the time period from 1980 to 2014 to study the relationship between inequality and electoral participation. Second, we zoom in on the German case and examine local data from 402 administrative districts between 1998 and 2017. Focusing on within-country variation eliminates differences that are linked to features of the political system. Finally, we combine survey data with macro-data to investigate the impact of inequality on individual voting. This final step also allows us to test whether the effect of income inequality on voter turnout differs across income groups. Taken together, we offer the most comprehensive analysis of the impact of social inequality on political inequality to date. We corroborate accounts that argue that economic inequality exacerbates participatory inequality.

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