Marchesi, D., Nikolova, M., & Angelini, V. (2026). Gini Who? The Relationship Between Inequality Perceptions and Life Satisfaction. Journal of Economic Inequality. https://doi.org/10.1007/s10888-026-09722-y
Marchesi, D., Angelini, V., Nikolova, M., & Popova, O. (2026): Early-Life Adversity and Preferences for Redistribution: A Global Perspective, GLO Discussion Paper, No. 1750, Global Labor Organization (GLO), Essen
Flat and Back Again: Individuals’ Response to Radical Tax Reforms
Abstract: Personal income tax reforms are highly visible and directly affect people’s disposable income and its distribution. A radical change, such as the introduction or abolition of a flat tax, which applies a single, uniform tax rate to all income levels, has both macroeconomic and behavioral consequences. Little is known, however, about its effect on individuals’ views and attitudes, which can determine economic choices and policy acceptance. This paper takes four case studies to investigate the impact of a radical tax reform on individuals’ expectations regarding their personal lives, household financial situations, and national economic and employment prospects. These cases include the introduction of a flat tax in Bulgaria and Hungary, and its abolition in Latvia and Lithuania. Using quarterly Eurobarometer survey data from 2001 to 2023, the study employs a difference-in-differences econometric framework that compares treated countries to a comparison group of countries with similar characteristics and stable tax regimes. I conduct the analysis separately for each treated country, over country-specific windows that span the 10 quarters before and after each reform. The results reveal that flat tax reforms can significantly shape economic expectations, with effects varying by country and political context. These changes reflect not only income-related factors but also ideological and fairness considerations, highlighting the need for policymakers to account for diverse mechanisms influencing public perceptions when designing tax policies.
How perceived inequality shapes well-being (May 21, 2024), IZA World of Labor (with M. Nikolova and V. Angelini)
Ervaren ongelijkheid (December 13, 2024), ESB Kort Uitgelicht