IDEAS home Printed from https://ideas.repec.org/a/eee/deveco/v169y2024ics0304387824000257.html
   My bibliography  Save this article

North Korean refugees’ implicit bias against South Korea predicts market earnings

Author

Listed:
  • Choi, Syngjoo
  • Hahn, Kyu Sup
  • Kim, Byung-Yeon
  • Lee, Eungik
  • Lee, Jungmin
  • Lee, Sokbae

Abstract

This paper investigates whether experiences of living in a communist regime relate to low market earnings. We recruit North Korean refugees and measure their implicit bias against South Korea by using the Implicit Association Test. Conducting double auction and bilateral bargaining market experiments, we find that North Korean refugees with a larger bias against South Korea have lower expectations about their earning potential, exhibit trading behavior with lower target profits, and earn less profits. These associations are robust to conditioning on correlates of preferences, human capital, and assimilation experiences.

Suggested Citation

  • Choi, Syngjoo & Hahn, Kyu Sup & Kim, Byung-Yeon & Lee, Eungik & Lee, Jungmin & Lee, Sokbae, 2024. "North Korean refugees’ implicit bias against South Korea predicts market earnings," Journal of Development Economics, Elsevier, vol. 169(C).
    • Handle: RePEc:eee:deveco:v:169:y:2024:i:c:s0304387824000257
    DOI: 10.1016/j.jdeveco.2024.103276
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0304387824000257
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jdeveco.2024.103276?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lori Beaman & Raghabendra Chattopadhyay & Esther Duflo & Rohini Pande & Petia Topalova, 2009. "Powerful Women: Does Exposure Reduce Bias?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(4), pages 1497-1540.
    2. Sara Lowes & Nathan Nunn & James A. Robinson & Jonathan Weigel, 2015. "Understanding Ethnic Identity in Africa: Evidence from the Implicit Association Test (IAT)," American Economic Review, American Economic Association, vol. 105(5), pages 340-345, May.
    3. Brian A Nosek & Yoav Bar-Anan & N Sriram & Jordan Axt & Anthony G Greenwald, 2014. "Understanding and Using the Brief Implicit Association Test: Recommended Scoring Procedures," PLOS ONE, Public Library of Science, vol. 9(12), pages 1-31, December.
    4. Nicola Fuchs-Schündeln & Paolo Masella, 2016. "Long-Lasting Effects of Socialist Education," The Review of Economics and Statistics, MIT Press, vol. 98(3), pages 428-441, July.
    5. Cantoni, Davide & Yuchtman, Noam, 2013. "The political economy of educational content and development: Lessons from history," Journal of Development Economics, Elsevier, vol. 104(C), pages 233-244.
    6. Eric Luis Uhlmann & Anthony Greenwald & Andrew Poehlmann & Mahzarin Banaji, 2009. "Understanding and Using the Implicit Association Test: III. Meta-Analysis of Predictive Validity," Post-Print hal-00516146, HAL.
    7. Kim,Byung-Yeon, 2017. "Unveiling the North Korean Economy," Cambridge Books, Cambridge University Press, number 9781107183797, October.
    8. Vernon L. Smith, 1962. "An Experimental Study of Competitive Market Behavior," Journal of Political Economy, University of Chicago Press, vol. 70(2), pages 111-111.
    9. Alberto Alesina & Nicola Fuchs-Schündeln, 2007. "Goodbye Lenin (or Not?): The Effect of Communism on People," American Economic Review, American Economic Association, vol. 97(4), pages 1507-1528, September.
    10. Syngjoo Choi & Jeongbin Kim & Eungik Lee & Jungmin Lee, 2022. "Probability Weighting and Cognitive Ability," Management Science, INFORMS, vol. 68(7), pages 5201-5215, July.
    11. Davide Cantoni & Yuyu Chen & David Y. Yang & Noam Yuchtman & Y. Jane Zhang, 2017. "Curriculum and Ideology," Journal of Political Economy, University of Chicago Press, vol. 125(2), pages 338-392.
    12. Shiller, Robert J & Boycko, Maxim & Korobov, Vladimir, 1991. "Popular Attitudes toward Free Markets: The Soviet Union and the United States Compared," American Economic Review, American Economic Association, vol. 81(3), pages 385-400, June.
    13. Christine Laudenbach & Ulrike Malmendier & Alexandra Niessen-Ruenzi, 2019. "Emotional Tagging and Belief Formation: The Long-Lasting Effects of Experiencing Communism," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 567-571, May.
    14. Davide Cantoni & Yuyu Chen & David Y. Yang & Noam Yuchtman & Y. Jane Zhang, 2017. "Curriculum and Ideology," Journal of Political Economy, University of Chicago Press, vol. 125(2), pages 338-392.
    15. Christine Laudenbach & Ulrike Malmendier & Alexandra Niessen-Ruenzi, 2020. "The Long-lasting Effects of Living under Communism on Attitudes towards Financial Markets," NBER Working Papers 26818, National Bureau of Economic Research, Inc.
    16. Tai, Chung-Ching & Chen, Shu-Heng & Yang, Lee-Xieng, 2018. "Cognitive ability and earnings performance: Evidence from double auction market experiments," Journal of Economic Dynamics and Control, Elsevier, vol. 91(C), pages 409-440.
    17. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Syngjoo Choi & Byung-Yeon Kim & Jungmin Lee & Sokbae (Simon) Lee, 2020. "Institutions, competitiveness and cognitive ability," CeMMAP working papers CWP31/20, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    2. Lange, Martin, 2021. "The legacy of state socialism on attitudes toward immigration," Journal of Comparative Economics, Elsevier, vol. 49(3), pages 733-750.
    3. Costa-Font, Joan & García-Hombrados, Jorge & Nicińska, Anna, 2024. "Long-lasting effects of indoctrination in school: Evidence from the People’s Republic of Poland," European Economic Review, Elsevier, vol. 161(C).
    4. Belmonte, Alessandro, 2020. "State Capacity, Schooling, and Fascist Education: Evidence from the Reclamation of the Pontine Marshes," CAGE Online Working Paper Series 528, Competitive Advantage in the Global Economy (CAGE).
    5. Costa-Font, Joan & Garcia-Hombrados, Jorge & Nici?ska, Anna, 2020. "Long-Lasting Effects of Communist Indoctrination in School: Evidence from Poland," IZA Discussion Papers 13944, Institute of Labor Economics (IZA).
    6. Syngjoo Choi & Byung-Yeon Kim & Jungmin Lee & Sokbae Lee, 2021. "Why North Korean Refugees are Reluctant to Compete: The Roles of Cognitive Ability," Papers 2108.08097, arXiv.org, revised Aug 2023.
    7. Testa, Patrick A., 2018. "Education and propaganda: Tradeoffs to public education provision in nondemocracies," Journal of Public Economics, Elsevier, vol. 160(C), pages 66-81.
    8. Benjamin W. Arold, 2022. "Evolution vs. Creationism in the Classroom: The Lasting Effects of Science Education," ifo Working Paper Series 379, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    9. Michela Carlana, 2019. "Implicit Stereotypes: Evidence from Teachers’ Gender Bias," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(3), pages 1163-1224.
    10. Bagues, Manuel & Roth, Christopher, 2020. "Interregional Contact and National Identity," CAGE Online Working Paper Series 526, Competitive Advantage in the Global Economy (CAGE).
    11. Bautista, M. A. & González, F. & Martínez, L. R. & Muñoz, P. & Prem, M., 2020. "Chile’s Missing Students: Dictatorship, Higher Education and Social Mobility," Documentos de Trabajo 18163, Universidad del Rosario.
    12. Diva Dhar & Tarun Jain & Seema Jayachandran, 2022. "Reshaping Adolescents' Gender Attitudes: Evidence from a School-Based Experiment in India," American Economic Review, American Economic Association, vol. 112(3), pages 899-927, March.
    13. Huichao Du & Yun Xiao & Liqiu Zhao, 2021. "Education and gender role attitudes," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(2), pages 475-513, April.
    14. Choi, Syngjoo & Kim, Byung-Yeon & Lee, Jungmin & Lee, Sokbae, 2020. "A tale of two Koreas: Property rights and fairness," Journal of Economic Behavior & Organization, Elsevier, vol. 170(C), pages 112-130.
    15. Bautista, María Angélica & González, Felipe & Martinez, Luis R. & Muñoz, Pablo & Prem, Mounu, 2020. "Dictatorship, Higher Education, and Social Mobility," SocArXiv 6st9r, Center for Open Science.
    16. Andrieş, Alin Marius & Plopeanu, Aurelian-Petruş & Sprincean, Nicu, 2023. "Institutional determinants of households’ financial investment behaviour across European countries," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 300-325.
    17. Nillesen, Eleonora & Grimm, Michael & Goedhuys, Micheline & Reitmann, Ann-Kristin & Meysonnat, Aline, 2021. "On the malleability of gender attitudes: Evidence from implicit and explicit measures in Tunisia," World Development, Elsevier, vol. 138(C).
    18. Luis R. Martinez & Jonas Jessen & Guo Xu, 2023. "A Glimpse of Freedom: Allied Occupation and Political Resistance in East Germany," American Economic Journal: Applied Economics, American Economic Association, vol. 15(1), pages 68-106, January.
    19. Bai, Yu & Li, Yanjun, 2020. "Good bye Chiang Kai-shek? The long-lasting effects of education under the authoritarian regime in Taiwan," Economics of Education Review, Elsevier, vol. 78(C).
    20. Kondylis,Florence & Legovini,Arianna & Vyborny,Kate & Zwager,Astrid Maria Theresia & Cardoso De Andrade,Luiza, 2020. "Demand for Safe Spaces : Avoiding Harassment and Stigma," Policy Research Working Paper Series 9269, The World Bank.

    More about this item

    Keywords

    Indoctrination; Ideological bias; Implicit Association Test (IAT); Market experiment; North Korea;
    All these keywords.

    JEL classification:

    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • P5 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:deveco:v:169:y:2024:i:c:s0304387824000257. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/devec .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.