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Related Experiment Video

Updated: Jun 12, 2025

The Joint Effect of Social Comparison and Social Distance on Evaluation of Intertemporal Choice Outcomes in Event-related Potential Studies
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Inequality aversion predicts support for public and private redistribution.

Thomas F Epper1,2, Ernst Fehr2,3, Claus Thustrup Kreiner2

  • 1CNRS, Institut d'Économie Scientifique Et de Gestion (IESEG) School of Management, University of Lille, Department of Economics & Management, F-59000 Lille, France.

Proceedings of the National Academy of Sciences of the United States of America
|September 17, 2024
PubMed
Summary
This summary is machine-generated.

People’s aversion to inequality, both advantageous and disadvantageous, influences their support for redistribution. Dislike of disadvantageous inequality drives public redistribution support, while advantageous inequality aversion fuels private donations.

Keywords:
altruismcharitable donationinequality aversionredistributionsocial preferences

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Area of Science:

  • Behavioral Economics
  • Social Policy
  • Experimental Economics

Background:

  • Rising societal inequality has renewed focus on redistribution policies.
  • Theoretical frameworks suggest inequality aversion influences support for redistribution.
  • Limited empirical evidence exists on the distinct roles of advantageous versus disadvantageous inequality aversion in societal redistribution.

Purpose of the Study:

  • To investigate the impact of advantageous and disadvantageous inequality aversion on public and private redistribution.
  • To empirically test theoretical predictions regarding these distinct forms of inequality aversion and their influence on redistribution preferences.

Main Methods:

  • Utilized an incentivized experiment to measure inequality aversion in a large sample (approx. 9,000) of Danish adults (20-64 years old).
  • Linked experimental data on inequality aversion to survey data on public redistribution support and administrative records of private donations (charity).
  • Employed a comprehensive set of controls using administrative data for robust empirical analysis.

Main Results:

  • Empirical results strongly support theoretical predictions.
  • Support for public redistribution significantly increases with both advantageous and disadvantageous inequality aversion.
  • Private redistribution (charitable donations) increases with advantageous inequality aversion but decreases with disadvantageous inequality aversion.

Conclusions:

  • Distinct forms of inequality aversion have differential impacts on public versus private redistribution.
  • Dislike of disadvantageous inequality is a key driver for supporting public redistribution policies aimed at reducing income disparities.
  • Findings highlight the nuanced psychological underpinnings of individual support for various redistribution mechanisms.