Found 2 article(s) for author 'wealth distribution'

(Mis)perceptions of Inequality

(Mis)perceptions of Inequality. Michael I. Norton, July 24, 2017, Paper, “Laypeople’s beliefs about the current distribution of outcomes such as income and wealth in their country influence their attitudes towards issues ranging from taxation to healthcare–but how accurate are these beliefs? We review the burgeoning literature on (mis)perceptions of inequality. First, we show that people on average misperceive current levels of inequality, typically underestimating the extent of inequality in their country. Second, we delineate potential causes of these misperceptions, including people’s overreliance on cues from their local environment, leading to their erroneous beliefs about both the overall distributions of wealth and income and their place in those distributions. Third, we document that these (mis)perceptions of inequality—but not actual levels of inequality—drive behavior and preferences for redistribution. More promisingly, we review research suggesting that correcting misperceptions influences preferences and policy outcomes.Link

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How Rigid is the Wealth Structure and Why? A Life-Course Perspective on Intergenerational Correlations in Wealth

How Rigid is the Wealth Structure and Why? A Life-Course Perspective on Intergenerational Correlations in Wealth. Alexandra Killewald, July 2016, Paper, “Inequality in family wealth is high and rising. Yet we know little about how much and how wealth inequality is maintained across generations. We argue that a long-term, life-course perspective reflective of wealth’s cumulative nature is crucial to understand the extent and channels of wealth reproduction across generations. Using data from the Panel Study of Income Dynamics that span nearly half a century, we attend to the life-cycle patterns of wealth attainment to reveal that intergenerational wealth correlations rise with age and are higher than previously believed. Furthermore, grandparental wealth is a unique predictor of grandchildren’s wealth, above and beyond the role of parental wealth, suggesting that a focus on only parentchild dyads underestimates the importance of family wealth lineages.” Link

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