Perceptions vs. Reality: Bridging the Objective-Subjective Nexus of Place Deprivation

Economic deprivation at the local level shapes political attitudes and behaviour, as observed across Western democracies. The prevailing assumption is that objective economic conditions serve as informational cues, shaping citizens' subjective perceptions of local economic conditions. However, subjective economic perceptions often diverge from objective indicators. We examine this objective-subjective nexus by investigating the factors influencing citizens' perceptions of a place's economic deprivation. Specifically, we assess the role of absolute economic conditions, relative conditions across space and time, and comparisons to the most salient out-group. Analyzing five waves of pooled cross-sectional survey data from the British Election Study (2017-2022) linked to median house prices as proxies for local and regional prosperity, we show that absolute economic conditions strongly influence perceptions. Citizens also draw on relative spatial and temporal comparison but the strengths of these effects vary, underscoring the interplay between objective conditions, subjective perceptions, and salient reference points.