Why We Don’t Mind the Gap

Abstract Rising socio-economic inequality has been paired with tolerance of inequality. When explaining individual tolerance of unequal income distribution, contextual factors capturing socio-economic conditions and objective inequality are less important than individual-level values and beliefs about the origins of and reasonings behind the unequal circumstances. These inequality-legitimizing narratives constitute a range of ideas from equal opportunities and individual liberties to egalitarian values and beliefs about the function of meritocracy. Findings from the linear mixed effects models on the cross-sectional data from the Integrated Values Study (2017–2020) on 34 OECD countries support the argument that individuals’ agreement with inequality legitimizing narratives predicts higher tolerance of unequal income distribution. However, country-level objective inequality and economic prosperity both fail to directly predict tolerance of unequal incomes. When compared to contextual factors, the acceptance of inequality legitimizing narratives is a significantly better predictor of inequality tolerance.