An optimal weighting scheme for a synthetic index of perception of inequality

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Abstract This study develops a composite index to measure perception of inequality (PI), focusing on two domains: inequality of opportunity and inequality of outcome. Using survey responses from 24 OECD countries within the International Social Survey Programme (ISSP), we identify latent patterns in public perceptions of inequality and construct a PI score using a weighting scheme optimized through latent variable models. By aggregating various indicators related to societal and economic inequalities, we address multidimensionality and the inherent unobservability of PI, ensuring our index provides a nuanced and comprehensive representation. The optimal weighting methodology allows for clear comparisons across groups and over time, reflecting context-invariance in the outcome domain but multidimensional perceptions in the opportunity domain. Validations with objective inequality indicators, such as the Gini index and intergenerational mobility indices, confirm the robustness of our score. Our findings reveal the sensitivity of the perception of inequality to demographic and socioeconomic factors, aligning with previous research. This index offers a valuable tool for understanding public perceptions of inequality and its drivers, with implications for policy evaluation and social research. JEL codes: D63, D31, D83
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An optimal weighting scheme for a synthetic index of perception of inequality | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article An optimal weighting scheme for a synthetic index of perception of inequality Sebastiano Bavetta, Paolo Li Donni, Maria Marino, Francesco Ribaudo This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-5413953/v1 This work is licensed under a CC BY 4.0 License Status: Under Revision Version 1 posted 9 You are reading this latest preprint version Abstract This study develops a composite index to measure perception of inequality (PI), focusing on two domains: inequality of opportunity and inequality of outcome. Using survey responses from 24 OECD countries within the International Social Survey Programme (ISSP), we identify latent patterns in public perceptions of inequality and construct a PI score using a weighting scheme optimized through latent variable models. By aggregating various indicators related to societal and economic inequalities, we address multidimensionality and the inherent unobservability of PI, ensuring our index provides a nuanced and comprehensive representation. The optimal weighting methodology allows for clear comparisons across groups and over time, reflecting context-invariance in the outcome domain but multidimensional perceptions in the opportunity domain. Validations with objective inequality indicators, such as the Gini index and intergenerational mobility indices, confirm the robustness of our score. Our findings reveal the sensitivity of the perception of inequality to demographic and socioeconomic factors, aligning with previous research. This index offers a valuable tool for understanding public perceptions of inequality and its drivers, with implications for policy evaluation and social research. JEL codes: D63, D31, D83 Perception of Inequality Multidimensionality Latent Class Model Weighting Scheme Composite Score Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Under Revision Version 1 posted Editorial decision: Revision requested 09 Jul, 2025 Reviews received at journal 08 Jul, 2025 Reviews received at journal 20 Mar, 2025 Reviewers agreed at journal 28 Jan, 2025 Reviewers agreed at journal 13 Jan, 2025 Reviewers invited by journal 05 Dec, 2024 Editor assigned by journal 11 Nov, 2024 Submission checks completed at journal 11 Nov, 2024 First submitted to journal 08 Nov, 2024 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. 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