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Although the concept of wealth is a topic that ancient philosophers have dealt with, relatively little attention is paid to it in psychology. This work sheds light on cognitive processes on how individuals derive a judgment about whether someone is rich and whether certain cues serve as subjective indicators of wealth. Based on three chapters that describe K = 11 observational and experimental studies (N = 2,315), three research questions shall be answered: First, to what extent do individuals differ when defining wealth? Secondly, are there universal cues of wealth that individuals use to identify rich people? And if yes, in what sense do these cues depend on the situation or context? Furthermore, it will be asked whether there are situational boundaries under which those cues do not apply. The present research shows that individuals differ in defining wealth and that they take their personal life circumstances and situational cues into account to define wealth. Moreover, evidence for a coherent wealth cue model was found that describes cues that are used by individuals to identify the rich (i.e., particularly wealthy people), whereby the validity of these cues depends on several contextual (e.g., cultural) factors. Lastly, it was found that by isolating individual wealth cues and looking at core mental representations of these cues, they may not be perceived as indicative for rich people anymore. The conclusions reported here set a foundation for further research on the perceptions of wealth which may be particularly relevant for the political discourse
This dissertation is concerned with the empirical investigation of the link between globalization and labor market outcomes as well as the determinants of governmental redistribution, with a special focus on the effects of culture and diversity on the welfare state. In recent years, globalization has been criticized for adverse structural effects, e.g. increasing employment volatility and higher inequality.
Following the introduction, the second chapter investigates the relationship between growing import penetration and manufacturing employment growth in 12 OECD countries between 1995 and 2011, accounting for various model specifications, different measures of import penetration, and alternative estimation strategies. The application of the latest version of the World Input-Output Database (WIOD), which has only recently become available, enables measurement of the effect of increases in imported intermediates according to their country of origin. The findings emphasize a weak positive overall impact of growing trade on manufacturing employment. However, while intermediate inputs from China and the new EU members are substitutes for manufacturing employment in highly developed countries, imports from the EU-27 complement domestic manufacturing production. The three-level mixed model utilized implies that the hierarchical structure of the data plays only a minor role, and controlling for endogeneity leaves the results unchanged.
The findings point to ambiguous effects of globalization on labor market outcomes which increase the demand for equalizing public policies. Accordingly, the following chapter examines the relationship between income inequality and redistribution, accounting for the shape of the income distribution, different development levels, and subjective perceptions. Cross-national inequality datasets that have become available only recently allow for the assessment of the link for various sample compositions and several model specifications. The empirical results confirm the Meltzer-Richard hypothesis, but suggest that the relationship between market inequality and redistribution is even stronger when using perceived inequality measures. The findings emphasize a decisive role of the middle class, while also identifying a negative impact of top incomes. The Meltzer-Richard effect is less pronounced in developing economies with less sophisticated political rights, illustrating that it is the political channel through which higher inequality translates into more redistribution.
Chapter (4) extends the framework developed in the preceding chapter by studying the effects of culture and diversity on governmental redistribution for a large sample of countries. To disentangle culture from institutions, the analysis employs regional instruments as well as data on linguistic differences, the frequency of blood types, and the prevalence of the pathogen Toxoplasma Gondii. Redistribution is higher in countries with (1) loose family ties and individualistic attitudes, (2) a high prevalence of trust and tolerance, (3) low acceptance of unequally distributed power and obedience, and (4) a prevalent belief that success is the result of luck and connections. Apart from their direct effects, these traits also exert an indirect impact by influencing the transmission of inequality to redistribution. Finally, the findings indicate that redistribution and diversity in terms of culture, ethnic groups, and religion stand in a non-linear relationship, where moderate levels of diversity impede redistribution and higher levels offset the generally negative effect.