Grosfeld, Irena

The Emerging Aversion to Inequality - 2009.


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This paper illustrates the emergence of inequality aversion in a transition country. Using a series of Polish cross-section surveys, we identify a structural break in the relationship between income inequality and subjective well-being. Inequality, initially perceived as a positive signal of increased opportunities, starts to undermine satisfaction after a couple of years, when individuals become skeptical about the legitimacy of the enrichment of reform winners. Satisfaction then stops following the ascension of national income. Classification JEL: C25, D31, D63, I30, P20, P26.