Work

“Center bias” is lower in more unequal local contexts

Year: 2025

Type: article

Abstract: We examine the relationship between local income inequality and people’s misperception that they are in the middle of the national income distribution (“center bias”). Local contexts shape perceptions of inequality by influencing the availability of opportunities for upward and downward social comparisons. Four mechanisms could link local inequality to perceptions of one’s relative income position: exposure versus segregation and contrast versus assimilation. We supplement geo-referenced survey data with context information and show that higher local inequality is associated with lower “center bias” (“exposure” mechanism). There is no clear evidence that respondents feel richer in richer contexts (“assimilation” mechanism).

Source: Economics Letters

DOI: 10.1016/j.econlet.2025.112799

Authors: Claudia Diehl, Felix Wolter

Institutions: University of Konstanz, Ludwig-Maximilians-Universität München

Language: English

Topic: Income, Poverty, and Inequality

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDG: Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $3,030