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Reference groups and complaints about inequality
Although influence of reference population on assessment of individual position is well recognized on the ground of sociology, its impact is rarely taken into account in economic analysis of inequality. Few analyses that are concerned with issue of reference groups in the context of inequality and relative deprivation measurement deal, however, with single reference group. The aim of the paper is consideration on how concept of reference populations of different kind (reference groups and reference categories) may be applied to assessment of aggregated complaint that results from inequality in income (wealth) distribution.

AbstractWe develop a methodology for measuring the scale of the unregistered wages paid to staff by employers. We show that the differences in earnings distribution between public‐ and private‐sector employees are not reflected in the distribution of expenditure. Assuming that public‐sector employees do not receive unreported income, this points to undisclosed income in the private sector. After showing that the distribution of income from non‐wage sources does not systematically depend on the sector, we argue that the differences may be attributed to envelope wages. We estimate that 10%–11% of employees in Poland receive envelope wages, which account for around 5% of total earnings.