| Abstract: |
The subjective well-being approach to valuation is applied to the valuation of
income inequality. Results show that objective inequality is a bad in the
industrialized economies but a good in the emerging economies. Too much
objective inequality is a bad in both areas. Results also show that people in
both areas consider income inequality as a good, thus suggesting that income
disparities are viewed as incentives to work harder and take risks. Such
findings on subjective inequality make sense if people have knowledge or even
hope that opportunities for economic advancement are available despite the
presence of objective inequality in their society. Ensuring that people get
fair chances to opportunities is a reasonable first step if income inequality
is yet not viewed as a problem. To draw out a demand for redistribution
requires actions that are intended to transform the consciousness of the
people. |