GINI DP 17: Income Inequality, Value Systems and Macroeconomic Performance

This paper offers a comprehensive econometric investigation of the impact of income inequality on the values endorsed by people. Using survey data from thirty-three OECD countries over a period of twenty-eight years, the following dimensions of value systems are investigated: work ethic, civism, obedience, honesty, altruism, and tolerance. In most cases, no robust effects from inequality on values are detected. However, there is some weak evidence that a more equal income distribution might reduce the work ethic of the population and increase its tolerance. JEL-Classifi cation: D63, O15, O57, Z1