LSE III Event | Local versus National: The effect of income (mis)perceptions on inequality beliefs

LSE III Event | Local versus National: The effect of income (mis)perceptions on inequality beliefs

Humanities, Social Sciences & Thought Economics & Finance KCEconomicsKCKBehavioural economics
🎙 Dr Katy Morris 👥 617 📅 October 8, 2025 ⏱ 58 min 👁 121 📄 original study 🧭 2026-08-16
Available in: English (current) Français

Keywords

income misperceptionslocal vs nationalinequality beliefssurvey experimentreference group theory

Summary

Dr Katy Morris presents findings from a pre-registered survey experiment in the United States investigating whether people have more accurate perceptions of their position in the local (county) income distribution compared to the national one, and whether local income corrections have stronger effects on inequality beliefs and preferences than national corrections. The study is motivated by the observation that national income distributions can mask huge local-level variation, and by recent evidence suggesting people anchor to more immediate reference groups. The experiment, conducted with a consumer panel, randomized respondents into three groups: local treatment, national treatment, and control. Results show that perceptions of household position within local and national income distributions are equally inaccurate, with respondents defaulting to the middle rung at both scales. Local income corrections produce more consistent changes in outcomes such as meritocratic belief and support for redistribution than national ones, though not uniformly stronger. The findings challenge the assumption that the national context is the natural or default reference group. The presentation includes discussion of survey design, validation checks, and limitations, as well as Q&A with the audience.

181 words

Critical Evaluation

Value of the Information & Strength of the Argument

The value of the information is high, as it addresses a timely and important question in political economy and public opinion research. The argumentation is solid, grounded in a pre-registered design and clear hypotheses. The speaker carefully explains the theoretical framework, the experimental setup, and the results, while acknowledging limitations and alternative interpretations. The use of descriptive statistics and coefficient plots effectively supports the claims. The discussion of why the US is a ‘most likely’ case for local accuracy but a ’least likely’ case for treatment effects adds nuance. The Q&A session further demonstrates the robustness of the reasoning, as the speaker responds thoughtfully to questions about county size, income definitions, and potential mechanisms.

Scientific Rigor, Source Quality, Title Accuracy

The scientific rigor is high: the study is pre-registered, uses a well-established survey methodology, and employs appropriate statistical techniques. The speaker cites relevant literature, including work by Fit and Zu, and references classic theories of relative deprivation and reference groups. The quality of sources is good, though specific citations are not explicitly listed in the presentation. The title accurately reflects the content, and the presentation is well-structured. The speaker is transparent about the sample’s limitations (e.g., consumer panel skewing poorer) and the strictness of the correction measure. No comments were provided for analysis.

222 words

Title / Content Match

The title accurately reflects the content, which compares the effects of local versus national income misperceptions on inequality beliefs.

Quality & Reliability

8/10

The presentation is based on a pre-registered survey experiment with a clear methodology, transparent discussion of limitations, and appropriate statistical analysis. The speaker is a postdoctoral fellow at a reputable institution, and the work is presented at an academic seminar.

Key Moments

Cited Sources

Concurring Sources

  • Fit et al. (2021) - Income rank and relative deprivation — Cited as evidence that people are better at positioning themselves relative to proximate reference groups in Denmark.
  • Zu et al. (2022) - Local income corrections and satisfaction — Cited as evidence that local income corrections affect income and wage satisfaction in Finland.

Contribution & Novelties

This study contributes original evidence on the relative accuracy of local versus national income self-placement and the differential effects of corrections on inequality beliefs. It challenges the assumption that the national context is the default reference group, showing that local corrections can produce more consistent changes in some outcomes. The findings have implications for designing information interventions and understanding public opinion on redistribution.

Pour aller plus loin :

  • Relative deprivation theory — Foundational concept for understanding how comparisons affect beliefs.
  • Reference group theory — Explains how individuals use social groups as benchmarks.
  • Survey experiment methodology — Overview of the experimental approach used in this study.

105 words

Radar Profile

The radar profile shows high scores in information quantity, quality, and reliability, with a slightly lower technical level, reflecting the accessible presentation of complex research. The overall balance indicates a rigorous and informative seminar.

Reliability 8/10