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Why Do the South Korean Public Misperceive Income Inequality?

Fri, September 1, 12:00 to 1:30pm PDT (12:00 to 1:30pm PDT), LACC, 511C

Abstract

This study seeks to better understand why ethnically homogenous countries in East Asia maintain high levels of support for redistribution while income inequality is relatively low in comparison to other countries. New research on this topic emphasizes the significance of how the public perceives the level of inequality (Gimpelson and Treisman 2017; Lee 2018). However, the source of individuals’ perceptions on income inequality is unknown. According to social comparison theory, people who compare their socioeconomic status to the rich are more likely to perceive the income distribution as unequal and to demand more redistribution. To test this hypothesis, we conduct a survey experiment on a nationally representative sample in South Korea. We find that being prompted to compare the respondent's social status with the rich lead to higher perceived level of inequality and stronger support redistribution. Cross-class comparison also undermines social trust, raises anxiety, and lowers self-esteem. The effects were particularly strong among respondents who reported high levels of social contact, which is actually an indirect exposure via the media.

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