Rising economic inequality is associated with more prejudice. Little empirical data, however, investigate how inequality affects individuals’ psychological processing and, in turn, exacerbates perceptions of prejudice in people’s geographic area. We hypothesized that higher perceived economic inequality triggers beliefs that unequal economies are zero-sum and leads to beliefs that people are in competition for limited resources, which may ultimately exacerbate perceived prejudice. Through nine experiments (Studies 1-5 in the manuscript and three additional studies in the Supplement), we provide evidence that higher perceived inequality increases perceived prejudice against a wide range of outgroups. Furthermore, zero-sum beliefs and perceived competition serially mediate this relationship (Studies 2 and 3). In Study 4, we investigate nuance in this hypothesized model by testing whether higher perceived economic inequality exacerbates perceived racial/ethnic prejudice among a large, diverse sample and find a similar pattern of results. Finally (Study 5), we demonstrate that assuaging competition beliefs mitigates perceived prejudice.
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