The emerging aversion to inequality: Evidence from subjective data1

In: Economics of transition, Volume 18, Issue 1, p. 1-26

Abstract

AbstractThis paper provides evidence of the changing attitudes to inequality during transition to the market in Poland. Using repeated cross‐sections of the population, it identifies a structural break in the relationship between income inequality and satisfaction. Whereas in the first stage of the transition process, an increase in income inequality was interpreted by the population as a positive signal of wider opportunities, later in the transition period increased inequality became a factor in dissatisfaction with the country's economic situation. This was accompanied by increasing public sentiment that the process of income distribution is flawed and corrupt.