Most people have limited knowledge about economic inequality. They are unaware of the extent of differences in pay at their own workplace; and they greatly underestimate the income of those at the top, and the extent of wealth inequality in the UK.
Public knowledge about the scale of economic inequality is limited:
Income and Pay Inequality
In general, people underestimate the amount people on high incomes are paid[1]. For instance, in 2010 just under 10% of people thought FTSE 100 Chief Executives were paid more than £4m, while more than 40% thought they were paid less than £1m. In reality, the average remuneration awarded to CEOs across the FTSE 100 was £4.5m in 2010[2].
Around 6–10% of respondents answered ‘don’t know’ to a question about differences in pay at their own workplace[3] in each year from 1983 to 1995.
Wealth Inequality
The public greatly underestimate the extent of UK wealth inequality. In 2013 they thought that the top 20% of the population owned 39% of wealth and the bottom 20% owned 10%. The actual distribution is far more unequal – the top 20% own 62% while the bottom 20% has less than 1%[4].
[1] (Taylor-Gooby et al. 2003)
[2] (BSA 2010)
[3] (Spencer 1996)