Scandinavian Working Papers in Economics
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Department of Economics, Stockholm University Research Papers in Economics, Department of Economics, Stockholm University

No 2012:10:
Social context and fairness perceptions: The role of status

Konstanze Albrecht (), Emma von Essen (), Armin Falk (), Klaus Fliessbach () and Eva Ranehill ()

Abstract: This study investigates how induced relative status affects fairness perceptions measured by satisfaction from different relative payoffs. We find that participants with lower status are less dissatisfied with disadvantageous payoff inequalities than equal or higher status participants. In contrast, when receiving an advantageous payoff, status does not influence satisfaction. Our findings suggest that relative social status has important implications for the acceptance of income inequalities.

Keywords: status; fairness perceptions; satisfaction; (follow links to similar papers)

JEL-Codes: A13; C91; D31; D63; (follow links to similar papers)

21 pages, July 19, 2012

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