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Self-centered and non-self-centered inequality aversion matter: Evidence from Uruguay based on an experimental survey

Journal of economic inequality, 2021-06, Vol.19 (2), p.265-291 [Peer Reviewed Journal]

The Author(s), under exclusive licence to Springer Science+Business Media, LLC part of Springer Nature 2021 ;COPYRIGHT 2021 Springer ;The Author(s), under exclusive licence to Springer Science+Business Media, LLC part of Springer Nature 2021. ;ISSN: 1569-1721 ;EISSN: 1573-8701 ;DOI: 10.1007/s10888-021-09479-6

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  • Title:
    Self-centered and non-self-centered inequality aversion matter: Evidence from Uruguay based on an experimental survey
  • Author: Burone, Santiago ; Leites, Martin
  • Subjects: Developing countries ; Development Economics ; Economic Growth ; Economics ; Economics and Finance ; Income distribution ; Inequality ; International Economics ; Political Science ; Public Finance ; Surveys
  • Is Part Of: Journal of economic inequality, 2021-06, Vol.19 (2), p.265-291
  • Description: In this paper we provide evidence on the empirical relevance of two notions of inequality aversion that have been explored in the literature: self-centered and non-self-centered inequality aversion. We used a flexible model and designed an experimental survey that allowed us to address jointly both of these notions of inequality aversion and to distinguish their relevance. The survey was administered to a sample of first-year University students in Uruguay. The findings confirm the empirical relevance of both notions of aversion to inequality in a developing country. Most study participants exhibited non-self-centered inequality aversion, while a minority of the individuals in our sample appeared to favor inequality. In general the magnitude of aversion to inequality varied as a function of individuals’ position in the income distribution. self-centered income aversion is influenced by many factors, which is manifested in the fact that the magnitude of its parameters is more heterogeneous in compression to non-self centered aversion. In a minority of individuals, self-centered aversion has zero effect, and they are more willing to pay to reduce non-self-centered inequality. Finally, considering both notions together may help prevent bias in the measurement of inequality aversion.
  • Publisher: New York: Springer US
  • Language: English
  • Identifier: ISSN: 1569-1721
    EISSN: 1573-8701
    DOI: 10.1007/s10888-021-09479-6
  • Source: ProQuest Central
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