Understanding the perceived magnitude of inequality: who broke the social ladders?

Abstract

In recent years, questions regarding economic inequalities have attracted an increasing number of research in the field on interdisciplinary social sciences. However, not enough attention has yet been paid for understanding the perceptions of economic inequalities and, particularly, the perceived size of inequalities in the society. The central research question set in this analysis explores how the magnitude of economic inequality is perceived in European Union Member states and how possible variation in these perceptions can be explained. Seven theory-based hypotheses are formulated in order to test both individual and contextual country-level effects on perceived magnitude of inequality. Assumed explanations at individual level include different demographic characteristics, subjective social status, expectations towards social mobility and attitudes towards welfare state. Marco level factors, included in formulated hypotheses, consider selected macroeconomic parameters, post-Soviet heritage and typology of welfare regimes. Standard Eurobarometer survey data (81.5) is chosen as the primary data set for statistical analysis. The designed methodological approach combines multiple and multilevel regression modelling in assessing explanatory capacity of chosen micro and macro-level indicators. The results yield for diverse explanation of perceived magnitude of economic inequality, including both individual and contextual country-level factors. Findings also reveal that personal believes and attitudes carry the largest part in overall explanatory capacity of the presented research model. More specifically, lower self-placement in society, negative expectations of future social mobility and higher support for welfare state prove to be the most significant explanatory factors for amplified perceptions of inequality magnitude.