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Although inequality in the US has increased since the 1960s, several studies show that Americans underestimate it. Reasons include overreliance on one's local perspective and ideologically-motivated cognition. We propose a novel mechanism to account for the misperceptions of income inequality. We hypothesize that compared to those who feel less autonomy, the people who believe they are autonomous and have control over their lives also believe that (1) income inequality is lower and (2) income inequality is more acceptable. Using a representative sample of 3,427 Americans, we find evidence to support these hypotheses., Competing Interests: The authors have declared that no competing interests exist.

How does your salary stack up against that of your peers'? And how do the salaries of your employees compare with those of other hospitals? This issue's cover story reports on these and other findings from the 1990 Management Compensation Study, sponsored by the American Hospital Association's American Society for Healthcare Human Resources Administration, Chicago. The survey shows that 1990 annual merit increases are expected to remain stable, at a little more than 5 percent. Compensation systems, however, are in a state of flux. More hospitals are introducing incentive programs that tie pay to improved performance and are creating more innovative reward systems. Short-term incentive plans, which pay annual bonuses based on performance, are increasing in popularity. And some hospitals are establishing long-term incentive plans to retain top executives.