Why the Perception of Inequalities Created by Elites Varies Across Social Classes and Countries

Economic inequalities and their perception by the population depend heavily on each individual’s social position and national context. A recent analysis conducted in nine countries reveals that individuals from the working and middle classes in developed nations, as well as workers in developing countries, feel the influence of elites on economic disparities more acutely. These elites, by controlling a significant share of resources, political decisions, and prestigious institutions, shape inequalities that do not result solely from market mechanisms or individual efforts.

A country’s economic situation, particularly the unemployment rate, plays a key role in this perception. When unemployment rises, distrust of elites intensifies, as economic hardships become more visible and pressing for citizens. People facing financial difficulties or unemployment tend to attribute inequalities to the influence of elites, while those who enjoy stable conditions often perceive these disparities as the result of personal choices or merit.

The differences between developed and developing countries are pronounced. In wealthy nations, elites often justify their position through subtle mechanisms, such as access to elite education or influential networks, which can create the illusion of a meritocratic society. Conversely, in developing countries, the power of elites is more visible and less concealed by institutions. Privileges there are often inherited or tied to political connections, making inequalities more evident and less accepted as fair.

Public policies, such as investments in education or social protection, can mitigate or reinforce these perceptions. However, their effectiveness depends on their ability to genuinely reduce disparities and inspire confidence in institutions. When these policies fail to provide economic security or social mobility, they fuel the belief that elites control opportunities and perpetuate inequalities.

How each person perceives inequalities is thus shaped by their daily experiences, social status, and their country’s economic conditions. These perceptions, in turn, influence political participation, social cohesion, and trust in democratic institutions. Understanding these dynamics is essential for designing policies that address the root causes of inequalities and meet the expectations of different social groups.

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Reference Work

DOI: https://doi.org/10.1007/s12232-026-00526-0

Title: The role of social class, status and country dynamics in shaping perceptions of elite-driven inequality

Journal: International Review of Economics

Publisher: Springer Science and Business Media LLC

Authors: Nur Hairani Abd Rahman