Working Paper

Social Position and Fairness Views

Kristoffer Balle Hvidberg, Claus Thustrup Kreiner, Stefanie Stantcheva
CESifo, Munich, 2021

CESifo Working Paper No. 8928

We link survey data containing Danish people’s perceptions of where they rank in various reference groups and fairness views with administrative records on their income history, life events, and reference groups. People know their income positions well, but believe others are closer to themselves than they really are. The perceived fairness of inequalities is strongly related to current social position, moves with shocks to social position (e.g., unemployment or promotions), and changes when people are experimentally shown their actual positions. People view inequalities within education group and co-workers as most unfair, but underestimate inequality the most exactly within these reference groups.

CESifo Category
Public Finance
Keywords: social position, fairness views, inequality, misperceptions, information experiment
JEL Classification: D310, C810