In this century, wealth has increasingly pooled into fewer hands, affecting almost half of all countries since 2000. The effects are wide-ranging. Bigger gaps between the rich and poor harm life expectancy, infant survival rates, and how happy people feel, especially those with less money. On a broader scale, growing inequality stunts economic growth and is linked to more financial crimes and violence.
A recent study from the Kellogg School shows that high inequality also changes how people view what’s right and wrong: when the gap between rich and poor is big, people are more likely to accept unethical behavior.
Being in control
For decades, researchers have understood the connection between our sense of control over our lives and how we judge ethical lapses. Previous studies have shown that when people feel less in control, they tend to react less strongly to unethical actions like stealing or lying.
But what about the impact of inequality on this relationship? Inequality limits social mobility and creates feelings of being left behind, which can erode our sense of control. Could this lead to a society where unethical behavior is more tolerated?
To explore this, researchers analyzed three extensive datasets: one tracking inequality across 196 countries since 1960, another on economic development across 182 countries since 1950, and a survey of over 125,000 people from 1981 to 2014. The survey asked about participants’ sense of control, trust in others, perceptions of competition, beliefs about wealth accumulation, and their views on the acceptability of certain behaviors, like cheating on taxes.
Inequality and control
Their analysis revealed that people in more unequal societies indeed felt less in control and were more accepting of unethical behavior. Surprisingly, there was no link between perceived competitiveness and attitudes toward unethical behavior, suggesting that it’s inequality specifically driving this justification.
The researchers then conducted experiments. In one, over 800 participants viewed images of ladders representing wealth distribution, and then rated the acceptability of unethical behaviors. Those who perceived their local area as more unequal were more likely to feel less in control and to justify unethical behavior.
Inequality, whether on a societal or neighborhood level, appears to play a significant role in shaping attitudes toward control and ethical standards.
However, relying solely on participants’ perceptions of their own neighborhoods has its limitations. To address this, the research team conducted another set of experiments using a fictional society called Bimboola, a construct commonly used in similar studies.
Income differences
In Bimboola, participants were informed about different income tiers, with themselves placed in the middle tier. Some were told that Bimboola was highly unequal, while others were told it was more equal.
To reinforce these descriptions, participants were asked to select among essential items like homes or modes of transportation available in Bimboola. In the highly unequal version, options varied widely in terms of expense or quality, including both mansions and modest homes, and luxury cars alongside more basic models. In the more equal version, the range of options was much narrower, with choices like slightly larger versus slightly smaller houses.
Participants then answered questions about their perceptions and expectations. As expected, those in the highly unequal society, even if fictitious, reported feeling less in control and were more accepting of unethical behaviors from both themselves and others.
Returning to real-world dynamics, the team investigated the role of social mobility—the ability of individuals to improve their socioeconomic status. They pondered whether the absence of social mobility might contribute to feelings of helplessness or lack of control.
The study discovered that people living in more unequal areas tend to feel they have less control over their lives. This is partly because they perceive fewer opportunities for upward mobility in such places.
At its core, policymakers aiming to bolster this sense of control among their constituents can implement initiatives aimed at curbing economic inequality. This may involve initiatives such as expanding affordable housing options, increasing the minimum wage, and establishing a progressive tax structure. Additionally, fostering educational and training opportunities that amplify individuals’ perception of social mobility can be instrumental in this endeavor.
