A social identity analysis of responses to economic inequality

Abstract

Even though there is growing awareness that economic inequality is harmful for people's health, the way that such inequality affects social behavior and political attitudes remains poorly understood. Moving beyond a focus on the health and well-being costs of income inequality, we review research that examines how economic inequality shapes dynamics between groups within societies, addressing the questions why, when, and for whom inequality affects social behavior and political attitudes. On the basis of classic social identity theorizing, we develop five hypotheses that focus on the way inequality shapes the fit of wealth categorizations (H1), intergroup relations (H2), and stereotypes about wealth groups (H3). We also theorize how the effects of inequality are moderated by socio-structural conditions (H4) and socio-economic status (H5). Together, these hypotheses provide a theoretically informed account of the way in which inequality undermines the social fabric of society and negatively affects citizen's social and political behavior.