Cited by 337Income, Poverty, and InequalityLabor market dynamics and wage inequalitySocial Policy and Reform Studies

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How Much (More) Should CEOs Make? A Universal Desire for More Equal Pay

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Kiatpongsan, Sorapop, Norton, Michael I.·2014·Perspectives on Psychological Science

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Abstract

Do people from different countries and different backgrounds have similar preferences for how much more the rich should earn than the poor? Using survey data from 40 countries ( N = 55,238), we compare respondents’ estimates of the wages of people in different occupations—chief executive officers, cabinet ministers, and unskilled workers—to their ideals for what those wages should be. We show that ideal pay gaps between skilled and unskilled workers are significantly smaller than estimated pay gaps and that there is consensus across countries, socioeconomic status, and political beliefs. Moreover, data from 16 countries reveals that people dramatically underestimate actual pay inequality. In the United States—where underestimation was particularly pronounced—the actual pay ratio of CEOs to unskilled workers (354:1) far exceeded the estimated ratio (30:1), which in turn far exceeded the ideal ratio (7:1). In sum, respondents underestimate actual pay gaps, and their ideal pay gaps are even further from reality than those underestimates.

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Authors: Kiatpongsan, S., & Norton, M. I.
Affiliations: Chulalongkorn University (TH)
Harvard University (US)
ORCID: Norton, Michael I.
Venue: Perspectives on Psychological Science
Publisher: SAGE Publications
Published: 2014-11
Volume: 9
Issue: 6
Pages: 587-593
ISSN: 1745-6916 (ISSN-L)
1745-6924
DOI: 10.1177/1745691614549773
OpenAlex: W2039675961
Cited by: 337
References: 4
Citations by year: 2026: 21 · 2025: 26 · 2024: 40 · 2023: 46 · 2022: 39 · 2021: 26 · 2020: 24 · 2019: 42 · 2018: 26 · 2017: 18 · 2016: 15 · 2015: 12 · 2014: 2
FWCI: 51.03
Type: journal article
Language: en
Open access: green
nrs.harvard.edu
Licence: cc-by
journals.sagepub.com/page/policies/text-and-data-mining-license (tdm)
Locations: Perspectives on Psychological Science (publishedVersion)
PubMed (publishedVersion)
Digital Access to Scholarship at Harvard (DASH) (Harvard University) (submittedVersion, cc-by)
Topics: Social Sciences › Sociology and Political Science › Income, Poverty, and Inequality
Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
Social Sciences › Political Science and International Relations › Social Policy and Reform Studies
Keywords: wage inequality, CEO compensation, wage gap, occupational pay, cabinet ministers, low-skilled workers, cross-national comparison, political beliefs, socioeconomic status
MeSH terms: Commerce, Cross-Cultural Comparison, Humans, Income, Political Systems, Politics, United States, Models, Economic, Internationality

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Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.

Statistics and arithmetic are recomputed, not judged.

Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.

What counts as a claim ›How we measure confidence ›How we check this ›

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How Much (More) Should CEOs Make? A Universal Desire for More Equal Pay

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About these checks