How does economic inequality influence social class identity and, in turn, affective polarization between the rich and the poor? Moving beyond the analysis of affective polarization along partisan lines, this paper focuses on the hostility between social groups and how it is affected by economic inequality. Based on social identity theory, we advance two conflicting theoretical arguments: On the one hand, since inequality diminishes the material status of the lower socioeconomic classes, political economists hypothesize that rising levels of economic inequality will decrease the class identity among the poor. Based on this, we argue that inequality should mitigate the perceived group conflict between the rich and the poor and affective polarization between these social groups should decrease. On the other hand, psychological theories of class conflict assume that inequality accentuates perceptions of individual economic positions, leading to a more pronounced class identification among both low- and high-income people. From this, we argue that resentment and animosity towards the out-group will increase and that affective polarization between the rich and the poor will intensify.
Using data from the International Social Survey we empirically test these competing hypotheses for 10 European countries over a period of more than 25 years. We contribute to the literature by showing the extent of affective polarization between social classes. Second, we will demonstrate whether economic inequality fosters this hostility between people with different social status, thereby undermining mutual respect and dialogue, which are some of the cornerstones of well-functioning democracies.