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<p>Despite the relevance of individual perceptions about their position in the income distribution in economic and political science models, there still is little evidence about how such perceptions are formed and how accurate they are. In this paper, we investigate what shapes subjective income perception at individual level and, in turn, determines misperception as measured by the gap between subjective and objective position in the income ladder. To do so we rely on data drawn from an ad hoc module included in the eighth wave of the SHARE dataset for three countries: Belgium, Italy and Spain. We find evidence of a systematic misperception: people in the lower income decile groups tend to overestimate their positioning in the income ladder while people in the higher income decile groups exhibit the opposite behavior. We explain these differences relying on a rich set of socio-demographic and economic characteristics as well as personality traits.</p>

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Understanding Income Misperception Among Older Adults: Evidence from Belgium, Italy, and Spain

  • 期刊论文

  • 出版模式：

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  • 发表日期：

    2026年1月22日

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  • Elisa Castagno,
  • Francesco Figari,
  • Mariacristina Rossi

摘要

Despite the relevance of individual perceptions about their position in the income distribution in economic and political science models, there still is little evidence about how such perceptions are formed and how accurate they are. In this paper, we investigate what shapes subjective income perception at individual level and, in turn, determines misperception as measured by the gap between subjective and objective position in the income ladder. To do so we rely on data drawn from an ad hoc module included in the eighth wave of the SHARE dataset for three countries: Belgium, Italy and Spain. We find evidence of a systematic misperception: people in the lower income decile groups tend to overestimate their positioning in the income ladder while people in the higher income decile groups exhibit the opposite behavior. We explain these differences relying on a rich set of socio-demographic and economic characteristics as well as personality traits.