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Does inequality harm the middle class?


Winkelmann, Liliana; Winkelmann, Rainer (2010). Does inequality harm the middle class? Kyklos, 63(2):301-316.

Abstract

The paper provides estimates of the effect of economic inequality on middle class well being in Switzerland. Economic well being is proxied by a person's satisfaction with his/her income. Two inequality indicators are used, one standard (the Gini coefficient of the pre-tax income distribution) and one novel (the number of luxury car registrations per 1000 population). Identification is through cross-sectional variation of these indicators at various levels of spatial aggregation. Results using data from the Swiss Household Panel confirm the existence of a robust inverse relationship between inequality and satisfaction among the middle class.

Abstract

The paper provides estimates of the effect of economic inequality on middle class well being in Switzerland. Economic well being is proxied by a person's satisfaction with his/her income. Two inequality indicators are used, one standard (the Gini coefficient of the pre-tax income distribution) and one novel (the number of luxury car registrations per 1000 population). Identification is through cross-sectional variation of these indicators at various levels of spatial aggregation. Results using data from the Swiss Household Panel confirm the existence of a robust inverse relationship between inequality and satisfaction among the middle class.

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11 citations in Web of Science®
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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:9 April 2010
Deposited On:01 Oct 2010 10:56
Last Modified:17 Feb 2018 17:12
Publisher:Wiley-Blackwell
ISSN:0023-5962
OA Status:Green
Publisher DOI:https://doi.org/10.1111/j.1467-6435.2010.00474.x
Official URL:http://www3.interscience.wiley.com/journal/123344609/abstract

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