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Department of Economics, Norwegian School of Economics (NHH) Discussion Paper Series in Economics, Department of Economics, Norwegian School of Economics (NHH)

No 18/2015:
Fairness and the Development of Inequality Acceptance.

Ingvild Almås (), Alexander W. Cappelen (), Erik Ø. Sørensen () and Bertil Tungodden ()

Abstract: Fairness considerations fundamentally affect human behavior, but Our understanding of the nature and development of people’s fairness preferences is limited. The dictator game has been the standard experimental design for studying fairness preferences, but it only captures a situation where there is broad agreement that fairness requires equal split. In real life, People often disagree on what is fair, largely because they disagree on whether individual achievements, luck, and efficiency considerations of what maximizes total benefits, can justify inequalities. We modified the dictator game to capture these elements, and studied how inequality acceptance develops in adolescence. We found as children enter adolescence, they increasingly viewed inequalities reflecting differences in individual achievements, but not luck, fair, whereas efficiency considerations mainly played a role in late adolescence.

Keywords: Fairness; inequality; (follow links to similar papers)

JEL-Codes: D63; (follow links to similar papers)

19 pages, August 10, 2015

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