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

Economic deprivation at the local level shapes political attitudes and behaviour, especially in recent elections across Western democracies. The prevailing assumption is that objective economic conditions act as information cues, shaping citizens' subjective perceptions of local economic conditions. However, subjective economic perceptions often diverge from objective indicators. In this article, we examine the 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, relative conditions over time, and comparisons to the most salient out-group, the economy in the capital. Analyzing five waves of pooled cross-sectional survey data from the British Election Study (2017-2022), linked to median house prices at the Middle Super Output Area (MSOA) and the Local Authority District (LAD) level as proxies for local and regional prosperity, our results reveal that while absolute local house prices strongly influence perceptions of a place’s economy, citizens also draw on relative comparisons. However, both spatially, comparing their locality to London, and temporally, assessing its local economic trajectory over time, effect strengths vary. These findings highlight the multidimensional nature of economic evaluations, underscoring the interplay between objective economic conditions, subjective perceptions, and salient reference points.