Monday, November 10, 2014

Finding the Right Level of Inequality

The growing disparity in economic inequality has become so stark that even Janet Yellen, Federal Reserve chairwoman, recently expressed concern. Interestingly, new research has discovered that American citizens desire an unequal, but more equal distribution of wealth and income. Lower levels of this "unequality" are associated with decreased unethical behavior and increased motivation and labor productivity. This study is published today in the inaugural issue of Policy Insights from the Behavioral and Brain Sciences (PIBBS).

"People from all walks of life – rich and poor, liberal and conservative – agree far more than they disagree on what America should look like. People exhibit a desire for unequality – not too equal, but not too unequal," wrote study author Michael I. Norton, of the Harvard Business School.

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