Working Paper

Income Misperception and Populism

Thilo N. H. Albers, Felix Kersting, Fabian Kosse
CESifo, Munich, 2022

CESifo Working Paper No. 10059

We propose that false beliefs about the own current economic status are an important factor for explaining populist attitudes. Along with the subjects’ receptiveness to right-wing populism, we elicit their perceived relative income positions in a representative survey of German households. We find that people with pessimistic beliefs about their income position are more attuned to populist statements. Key to understanding the misperception-populism relationship are strong gender differences in the mechanism: Misperception triggers income dissatisfaction for both men and women, but the former are much more likely to channel their discontent into affection for populist ideas.

CESifo Category
Public Choice
Behavioural Economics
Keywords: perception, income, populism
JEL Classification: D630, D720, D910, P160