Scandinavian Working Papers in Economics

Discussion Paper Series in Economics,
Norwegian School of Economics, Department of Economics

No 10/2022: Acceptance of inequality between children: Large-Scale Experimental Evidence from China and Norway

Alexander W. Cappelen (), Ranveig Falch (), Zhongjing Huang and Bertil Tungodden ()
Additional contact information
Alexander W. Cappelen: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Ranveig Falch: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Zhongjing Huang: East China Normal University
Bertil Tungodden: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway

Abstract: In a novel experimental design with nearly 10,000 adults and children, we study how adults in two societies characterized by very different levels of income inequality, Shanghai (China) and Norway, make real distributive choices involving children. We document a large cross-societal difference in the acceptance of inequality between children: adults in Shanghai implement twice as much inequality between children as do adults in Norway. This finding is robust to varying the age of the children and key features of the economic environment. Finally, we show that the willingness to accept inequality between children is predictive of attitudes to child policies.

Keywords: Childhood inequality; fairness; social preferences; moral development

JEL-codes: D63

Language: English

56 pages, July 5, 2022

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