Income position misperceptions in Europe

According to estimations based on a recent Eurobarometer survey, more than 40% of EU citizens underestimate their income position, while circa 15% overestimate it. Respondents tend to place themselves closer to the middle of their country’s income distribution than they actually are. In other words, lower income households tend to overestimate their income position, while higher income households tend to underestimate it. This tendency holds across all countries. Misperceptions about one’s position in the country’s income distribution tend to be larger in lower income countries, in countries that have experienced faster income growth in recent years and in countries with higher inequality. Misperceptions are correlated with several socio-demographic characteristics. For example, younger people, women and less educated people misperceive their income position more on average. Respondents who overestimate their income position report higher life fairness perceptions, are less concerned about income inequality and are less likely to favour a spending increase on income support policies. Correspondingly, those who underestimate their income position are more concerned about inequality and are more supportive of income redistribution.

BERLINGIERI Francesco ; DHOMBRES Beatrice ; MAURI Caterina ; MOLLERSTROM Johanna; STEPANOVA Elena

Berlingieri, F., Dhombres, B., Mauri, C., Mollerstrom, J. and Stepanova, E., Income position misperceptions in Europe, European Commission, Ispra, 2023, JRC135209.

2023-11-08

European Commission

JRC135209