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Economic Inequality and Risk-Taking Behaviors

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The Social Psychology of Inequality

Abstract

This chapter investigates the relationship between economic inequality and individuals’ risk-taking behaviors. We focus on risk-taking behaviors because risk is involved in numerous domains, such as gambling, investment in social interactions, health/safety, ethics, and recreation (Johnson, Wilke & Weber, 2004; Weber, Blais & Betz, 2002). Using foundational theories in social psychology, such as social comparison theory and risk sensitivity theory, we contend that economic inequality may increase risk-taking through a social comparison process. We examine support for this claim through the following framework: First, we briefly define economic inequality. Second, we discuss the relationship between inequality and risk-taking behavior. Third, we discuss why economic inequality is related to risk-taking behaviors. These findings are important because they provide a further understanding of why economic inequality may be associated with high risk and undesirable societal outcomes such as increased gambling, burglary, and robbery. Furthermore, these findings provide potential avenues for interventions.

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Notes

  1. 1.

    Although we recognize that economic inequality can be broken down into at least three categories (wealth inequality, income inequality, and pay inequality), we will not delve into the intricacies of the effects of different type of inequalities in this chapter. Instead, we will broadly focus on economic inequality and its psychological effects.

  2. 2.

    We recognize that some calculations of economic inequality utilize the average or median economic well-being as a comparison point in a ratio.

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Author information

Authors and Affiliations

  1. University of Virginia, Charlottesville, VA, United States

    Jazmin L. Brown-Iannuzzi & Stephanie E. McKee

Authors
  1. Jazmin L. Brown-Iannuzzi
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  2. Stephanie E. McKee
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Editors and Affiliations

  1. School of Psychology, University of Queensland, St. Lucia, QLD, Australia

    Jolanda Jetten  & Kim Peters  & 

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Brown-Iannuzzi, J.L., McKee, S.E. (2019). Economic Inequality and Risk-Taking Behaviors. In: Jetten, J., Peters, K. (eds) The Social Psychology of Inequality. Springer, Cham. https://doi.org/10.1007/978-3-030-28856-3_13

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