No government responsiveness on economic inequality and minimum wage

A recent international study of inequality by Michael Norton and Sorapop Kiatpongsan was already mentioned here for its findings about how uninformed the public was about matters of public policy. The study collected the opinion of people about what the CEO-to-average-worker pay ratio should be, and their best guess of what it actually was. A summary of the findings are shown in the table at the bottom.

Interestingly, not only do median estimates of the pay ratio in all countries grossly underestimate the true values, but there is essentially not correlation between the two (R2 = 14%, 3.5% after dropping the U.S. outlier):

Continue reading