From Margins to Headlines: Analyzing the Determinants of Increased Media Focus on Income Inequality

ABSTRACT This study examines the determinants of media coverage on income inequality across nine OECD countries from 1980 to 2021, aiming to understand its increased salience after the Global Financial Crisis despite minimal changes in actual inequality trends. Using a novel dataset of over 400 million newspaper articles, we analyze the media coverage volume and tone, examining their relationships with economic fundamentals and extra‐economic factors. Our results show that economic fundamentals account for less than half of the variation in coverage, while the rise of populism and Piketty's book publication coincided with increased attention. The media focused more on market income inequality, potentially skewing public perception. The findings highlight the significant role of extra‐economic factors in shaping inequality coverage, emphasizing the need for political leaders to communicate economic successes more effectively given media tendencies to focus on negative developments.