Social Preferences of Different Income Groups and the case of Taste-Based Inequality

Ofek-Shanny Y, Malz A, Cohen R (2024)


Publication Type: Other publication type

Publication year: 2024

Abstract

Many unequal economic allocation decisions involve the judgment of the decision-maker in charge of the allocation. This judgment may be rooted in objective measures like grades or performance, but it can also incorporate a subjective component. The subjective component may be perceived as fair when parties' needs are taken into consideration, but it may also be viewed as unjust, particularly in cases of discrimination based on personal taste. In an experimental impartial-spectator design, we explore whether individuals perceive this type of subjective taste-based inequality as fair. We compare their attitudes towards it with those arising from inequalities grounded in objective procedures, namely, merit and luck. We also zoom-in on the differences in fairness perceptions towards luck, merit, and taste-based inequalities among individuals with above-average and below-average incomes. Using a large sample of the Israeli adult population (n=1,156), we find that taste-based inequality is perceived distinctively compared to inequalities arising from luck or merit. Nevertheless, spectators' redistribution decisions imply that it is treated as an unfair source of inequality, similar to luck and unlike merit. Additionally, our work reveals that the commonly reported finding of merit being considered more fair than luck is primarily driven by individuals with above-average income.

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How to cite

APA:

Ofek-Shanny, Y., Malz, A., & Cohen, R. (2024). Social Preferences of Different Income Groups and the case of Taste-Based Inequality.

MLA:

Ofek-Shanny, Yuval, Amnon Malz, and Rachelle Cohen. Social Preferences of Different Income Groups and the case of Taste-Based Inequality. 2024.

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