Distorted perspectives: middle class and wealth

New survey of the Konstanz Inequality Barometer shows: The majority of the German population underestimates or overestimates their prosperity. As a result, many people simply think of them-selves as middle class.

Reports and Proceedings

UNIVERSITY OF KONSTANZ

Big earners as well as low earners see themselves as part of the middle class, as do most people in Germany – regardless of their actual wealth. In a representative survey called Inequality Barometer, researchers from the Cluster of Excellence "The Politics of Inequality" at the University of Konstanz asked Germans about the distribution of wealth – and where they see themselves. Perceptions are highly skewed, especially in the area of income and wealth inequality. As in the first survey in 2020, most respondents classify themselves as middle class and thus misjudge their financial situation compared with the population as a whole. 

Perceptions are particularly skewed with regard to wealth inequality: Although wealth is distributed even more unequally than income in favour of the upper class, few Germans perceive it that way. Sharon Baute, co-author of the study, explains: "In the politically charged debates about inheritance and wealth tax, for example, it becomes apparent: Many from the middle class seem to believe such taxes apply to them personally. They underestimate how much wealthier others are." Misperceptions like these make it less likely that people support stronger redistributive policies.

One of the recommendations the authors make in their policy paper is raising the public awareness of the unequal wealth distribution. The paper is available on the website of the think thank "Das Progressive Zentrum".

The Inequality Barometer
The Inequality Barometer is a representative online survey first conducted in Germany in 2020. It examines individual perceptions of inequality and its political impact. The second wave of the survey, conducted in the autumn of 2022, focussed on the perceptions of income and wealth inequality, on the question of how people view opportunities for future generations as well as on the influence of these perceptions on political attitudes. The data are collected every two years and thus make it possible to observe long-term inequality trends in Germany.

 

Key facts

• Policy paper: Marius R. Busemeyer, Nanna Lauritz Schönhage, Sharon Baute, Luna Bellani, Guido Schwerdt (2023): Gloomy prospects: The Konstanz Inequality Barometer shows that inequality is perceived to have increased. Policy Paper 12: Inequality Barometer – Inequality and Social Mobility. 11 May 2023.
• Data collection: The survey data were collected as part of an online survey of German residents over the age of 18. The survey took place between 14 November and 2 December 2022. A total of 6,319 respondents participated.
• Inequality Barometer project team in the Cluster of Excellence "The Politics of Inequality" at the University of Konstanz:
  • Professor Marius R. Busemeyer is a professor of political science in the Department of Politics and Public Administration and speaker of the Cluster of Excellence.
  • Nanna Lauritz Schönhage is a political scientist and postdoctoral researcher at the Cluster of Excellence.
  • Sharon Baute is a junior professor of comparative social policy in the Department of Politics and Public Administration at the University of Konstanz and contact person for the Inequality Barometer.
  • Luna Bellani is an applied microeconomist. She is a lecturer at the Institute of Economics, Ulm University, and research associate at the Cluster of Excellence.
  • Guido Schwerdt is a professor in the Department of Economics and principal investigator at the Cluster of Excellence.