Perceptions of Income Inequality and Preferences Regarding Income Distribution in the Czech Republic Cover Image

Vnímání příjmových nerovností a preference ohledně rozdělení příjmů v České republice
Perceptions of Income Inequality and Preferences Regarding Income Distribution in the Czech Republic

Author(s): Ivan Petrúšek
Subject(s): Politics / Political Sciences, Social Sciences, Economy
Published by: Vysoká škola ekonomická v Praze
Keywords: income distribution; perceptions; equality preferences; Czech Republic

Summary/Abstract: A representative survey of adult population is used to analyse perceptions of existing income inequality and preferences for ideal income distribution in the Czech Republic. On average, Czechs view the distribution of disposable income as more unequal than it actually is. This biased perception results from underestimating total income shares belonging to bottom quintiles and overestimating the total income share belonging to the top income quintile. Whereas the majority of Czechs prefer some level of income stratification, there are about four tenths of people who would prefer to live in a completely equal society. These are primarily older, less educated and lower income people whose preferences formulated under uncertainty are mostly consistent with the maximin principle and inequality aversion. Almost a fifth of Czechs would prefer an income distribution consistent with efficiency concerns.

  • Issue Year: 66/2018
  • Issue No: 5
  • Page Range: 550-568
  • Page Count: 19
  • Language: Czech