IDEAS home Printed from https://ideas.repec.org/a/noj/journl/v40y2015p3.html
   My bibliography  Save this article

Are Self-Made Men Made Equally? An Experimental Test of Impartial Redistribution and Perceptions of Self-Determination

Author

Listed:
  • David Chavanne

    (Economics Department, Connecticut College)

  • Kevin A. McCabe

    (Department of Economics, George Mason University)

  • Maria Pia Paganelli

    (Department of Economics, Trinity University)

Abstract

Using a laboratory experiment, we examine if third party redistribution from a “Have” to a “Have-not” is affected by (1) whether a Have’s advantage is in some way self-determined and (2) whether self-determination occurs in two dimensions compared to one dimension. We find that redistribution decreases if a Have earns an advantageous opportunity or earns income. But we also find that redistribution does not decrease any further if a Have earns both an opportunity and income. These results suggest that, in line with existing work, the perception that advantages are self-determined matters for redistribution. But the results also suggest that, once one develops the perception that self-determination exists, additional dimensions self-determination may not matter on the margin. We also find that stakeholders’ expectations of redistribution do not depend on whether advantages in the experiment are self-determined. Expectations instead depend on whether a stakeholder is a Have or a Have-not.

Suggested Citation

  • David Chavanne & Kevin A. McCabe & Maria Pia Paganelli, 2015. "Are Self-Made Men Made Equally? An Experimental Test of Impartial Redistribution and Perceptions of Self-Determination," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 40, pages 1-3.
  • Handle: RePEc:noj:journl:v:40:y:2015:p:3
    as

    Download full text from publisher

    File URL: http://www.nopecjournal.org/NOPEC_2015_a3.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hoffman Elizabeth & McCabe Kevin & Shachat Keith & Smith Vernon, 1994. "Preferences, Property Rights, and Anonymity in Bargaining Games," Games and Economic Behavior, Elsevier, vol. 7(3), pages 346-380, November.
    2. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
    3. Kangas, Olli, 2003. "The grasshopper and the ants: popular opinions of just distribution in Australia and Finland," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 31(6), pages 721-743.
    4. Konow, James, 2001. "Fair and square: the four sides of distributive justice," Journal of Economic Behavior & Organization, Elsevier, vol. 46(2), pages 137-164, October.
    5. Thomas Piketty, 1995. "Social Mobility and Redistributive Politics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 551-584.
    6. Faravelli, Marco, 2007. "How context matters: A survey based experiment on distributive justice," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1399-1422, August.
    7. Roland Benabou & Efe A. Ok, 2001. "Social Mobility and the Demand for Redistribution: The Poum Hypothesis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(2), pages 447-487.
    8. Corneo, Giacomo & Gruner, Hans Peter, 2002. "Individual preferences for political redistribution," Journal of Public Economics, Elsevier, vol. 83(1), pages 83-107, January.
    9. Roberto Perotti, 1993. "Political Equilibrium, Income Distribution, and Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(4), pages 755-776.
    10. Roland Bénabou & Jean Tirole, 2006. "Belief in a Just World and Redistributive Politics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 699-746.
    11. Alexander W. Cappelen & James Konow & Erik ?. S?rensen & Bertil Tungodden, 2013. "Just Luck: An Experimental Study of Risk-Taking and Fairness," American Economic Review, American Economic Association, vol. 103(4), pages 1398-1413, June.
    12. Smith, Vernon L, 1982. "Microeconomic Systems as an Experimental Science," American Economic Review, American Economic Association, vol. 72(5), pages 923-955, December.
    13. Alberto Alesina & George-Marios Angeletos, 2005. "Fairness and Redistribution," American Economic Review, American Economic Association, vol. 95(4), pages 960-980, September.
    14. Rebecca Blank, 2003. "Selecting Among Anti-Poverty Policies: Can an Economist be Both Critical and Caring?," Review of Social Economy, Taylor & Francis Journals, vol. 61(4), pages 447-469.
    15. Ruffle, Bradley J., 1998. "More Is Better, But Fair Is Fair: Tipping in Dictator and Ultimatum Games," Games and Economic Behavior, Elsevier, vol. 23(2), pages 247-265, May.
    16. Cappelen, Alexander W. & Tungodden, Bertil, 2006. "A Liberal Egalitarian Paradox," Economics and Philosophy, Cambridge University Press, vol. 22(3), pages 393-408, November.
    17. Michael Howard, 2005. "Basic income, liberal neutrality, socialism, and work," Review of Social Economy, Taylor & Francis Journals, vol. 63(4), pages 613-631.
    18. Oxoby, Robert J. & Spraggon, John, 2008. "Mine and yours: Property rights in dictator games," Journal of Economic Behavior & Organization, Elsevier, vol. 65(3-4), pages 703-713, March.
    19. Alexander W. Cappelen & Astri Drange Hole & Erik Ø Sørensen & Bertil Tungodden, 2007. "The Pluralism of Fairness Ideals: An Experimental Approach," American Economic Review, American Economic Association, vol. 97(3), pages 818-827, June.
    20. James Konow, 2009. "Is fairness in the eye of the beholder? An impartial spectator analysis of justice," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 33(1), pages 101-127, June.
    21. Alesina, Alberto & La Ferrara, Eliana, 2005. "Preferences for redistribution in the land of opportunities," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 897-931, June.
    22. Boarini, Romina & Le Clainche, Christine, 2009. "Social preferences for public intervention: An empirical investigation based on French data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(1), pages 115-128, January.
    23. Roland Bénabou, 1996. "Inequality and Growth," NBER Chapters, in: NBER Macroeconomics Annual 1996, Volume 11, pages 11-92, National Bureau of Economic Research, Inc.
    24. Oded Galor & Joseph Zeira, 1993. "Income Distribution and Macroeconomics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(1), pages 35-52.
    25. James Konow, 2000. "Fair Shares: Accountability and Cognitive Dissonance in Allocation Decisions," American Economic Review, American Economic Association, vol. 90(4), pages 1072-1091, September.
    26. Hoffman, Elizabeth & McCabe, Kevin & Smith, Vernon L, 1996. "Social Distance and Other-Regarding Behavior in Dictator Games," American Economic Review, American Economic Association, vol. 86(3), pages 653-660, June.
    27. M. Fong, Christina & Oberholzer-Gee, Felix, 2011. "Truth in giving: Experimental evidence on the welfare effects of informed giving to the poor," Journal of Public Economics, Elsevier, vol. 95(5-6), pages 436-444, June.
    28. Fong, Christina M. & Bowles, Samuel & Gintis, Herbert, 2006. "Strong reciprocity and the welfare state," Handbook on the Economics of Giving, Reciprocity and Altruism, in: S. Kolm & Jean Mercier Ythier (ed.), Handbook of the Economics of Giving, Altruism and Reciprocity, edition 1, volume 1, chapter 23, pages 1439-1464, Elsevier.
    29. Almaz Zelleke, 2005. "Basic income in the United States: Redefining citizenship in the liberal state," Review of Social Economy, Taylor & Francis Journals, vol. 63(4), pages 633-648.
    30. Alberto Alesina & Edward Glaeser & Bruce Sacerdote, 2001. "Why Doesn't the United States Have a European-Style Welfare State?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 32(2), pages 187-278.
    31. Erik Schokkaert & Bart Capeau, 1991. "Interindividual Differences in Opinions about Distributive Justice," Kyklos, Wiley Blackwell, vol. 44(3), pages 325-345, August.
    32. David L. Dickinson & Jill Tiefenthaler, 2002. "What Is Fair? Experimental Evidence," Southern Economic Journal, John Wiley & Sons, vol. 69(2), pages 414-428, October.
    33. Cappelen, Alexander W. & Sørensen, Erik Ø. & Tungodden, Bertil, 2010. "Responsibility for what? Fairness and individual responsibility," European Economic Review, Elsevier, vol. 54(3), pages 429-441, April.
    34. repec:bla:kyklos:v:44:y:1991:i:3:p:325-45 is not listed on IDEAS
    35. James Bryan, 2005. "Have the 1996 welfare reforms and expansion of the earned income tax credit eliminated the need for a basic income guarantee in the US?," Review of Social Economy, Taylor & Francis Journals, vol. 63(4), pages 595-611.
    36. Konow, James, 1996. "A positive theory of economic fairness," Journal of Economic Behavior & Organization, Elsevier, vol. 31(1), pages 13-35, October.
    37. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
    38. Fong, Christina, 2001. "Social preferences, self-interest, and the demand for redistribution," Journal of Public Economics, Elsevier, vol. 82(2), pages 225-246, November.
    39. Burrows, Paul & Loomes, Graham, 1994. "The Impact of Fairness on Bargaining Behaviour," Empirical Economics, Springer, vol. 19(2), pages 201-221.
    40. Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
    41. M. Fong, Christina & Oberholzer-Gee, Felix, 2011. "Truth in giving: Experimental evidence on the welfare effects of informed giving to the poor," Journal of Public Economics, Elsevier, vol. 95(5), pages 436-444.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chavanne David, 2020. "Thinking Like (Law-And-) Economists – Legal Rules, Economic Prescriptions and Public Perceptions of Fairness," Review of Law & Economics, De Gruyter, vol. 16(1), pages 1-42, March.
    2. Chavanne David, 2020. "Thinking Like (Law-And-) Economists – Legal Rules, Economic Prescriptions and Public Perceptions of Fairness," Review of Law & Economics, De Gruyter, vol. 16(1), pages 1-42, March.
    3. Jones, Luke & Cseh, Attila, 2021. "Earning responsibility increases risk taking among representative decision makers," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 317-329.
    4. David Chavanne & Kevin A. McCabe & Maria Pia Paganelli, 2019. "Shared Experience and Third-Party Redistribution," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 45(3), pages 446-463, June.
    5. David Chavanne, 2017. "Shaking Off Burdens – Debt Relief and Moral Intuitions," Kyklos, Wiley Blackwell, vol. 70(3), pages 381-401, August.

    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. David Chavanne & Kevin A. McCabe & Maria Pia Paganelli, 2019. "Shared Experience and Third-Party Redistribution," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 45(3), pages 446-463, June.
    2. David Chavanne, 2017. "Shaking Off Burdens – Debt Relief and Moral Intuitions," Kyklos, Wiley Blackwell, vol. 70(3), pages 381-401, August.
    3. Karagozoglu, Emin & Riedl, Arno, 2010. "Information, Uncertainty, and Subjective Entitlements in Bargaining," IZA Discussion Papers 5079, Institute of Labor Economics (IZA).
    4. Grimalday, Gianluca & Karz, Anirban & Proto, Eugenio, 2012. "Everyone Wants a Chance: Initial Positions and Fairness in Ultimatum Games," CAGE Online Working Paper Series 93, Competitive Advantage in the Global Economy (CAGE).
    5. Tausch, Franziska & Potters, Jan & Riedl, Arno, 2013. "Preferences for redistribution and pensions. What can we learn from experiments?," Journal of Pension Economics and Finance, Cambridge University Press, vol. 12(3), pages 298-325, July.
    6. Vanessa Valero, 2022. "Redistribution and beliefs about the source of income inequality," Experimental Economics, Springer;Economic Science Association, vol. 25(3), pages 876-901, June.
    7. Chavanne David, 2020. "Thinking Like (Law-And-) Economists – Legal Rules, Economic Prescriptions and Public Perceptions of Fairness," Review of Law & Economics, De Gruyter, vol. 16(1), pages 1-42, March.
    8. Sophie Harnay & Elisabeth Tovar, 2017. "Obeying vs. resisting unfair laws. A structural analysis of the internalization of collective preferences on redistribution using classification trees and random forests," EconomiX Working Papers 2017-34, University of Paris Nanterre, EconomiX.
    9. Alexander W Cappelen & Johanna Mollerstrom & Bjørn-Atle Reme & Bertil Tungodden, 2022. "A Meritocratic Origin of Egalitarian Behaviour," The Economic Journal, Royal Economic Society, vol. 132(646), pages 2101-2117.
    10. Eisenkopf, Gerald & Fischbacher, Urs & Föllmi-Heusi, Franziska, 2013. "Unequal opportunities and distributive justice," Journal of Economic Behavior & Organization, Elsevier, vol. 93(C), pages 51-61.
    11. Rafael Di Tella & Ricardo Pérez-Truglia, 2010. "Conveniently Upset: Avoiding Altruism by Distorting Beliefs About Others," NBER Working Papers 16645, National Bureau of Economic Research, Inc.
    12. Roland Iwan Luttens & Marie-Anne Valfort, 2012. "Voting for Redistribution under Desert-Sensitive Altruism," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(3), pages 881-907, September.
    13. Ingvild Almås & Alexander W. Cappelen & Bertil Tungodden, 2020. "Cutthroat Capitalism versus Cuddly Socialism: Are Americans More Meritocratic and Efficiency-Seeking than Scandinavians?," Journal of Political Economy, University of Chicago Press, vol. 128(5), pages 1753-1788.
    14. Fabio Galeotti & Reuben Kline & Raimondello Orsini, 2014. "When Foul Play Seems Fair: Dishonesty as a Response to Violations of Just Deserts," Post-Print halshs-02467507, HAL.
    15. Alexander Cappelen & Yiming Liu & Hedda Nielsen & Bertil Tungodden, 2024. "Fairness in a Society of Unequal Opportunities," Rationality and Competition Discussion Paper Series 506, CRC TRR 190 Rationality and Competition.
    16. Roth, Christopher & Wohlfart, Johannes, 2018. "Experienced inequality and preferences for redistribution," Journal of Public Economics, Elsevier, vol. 167(C), pages 251-262.
    17. Sophie Harnay & Élisabeth Tovar, 2017. "Obeying vs. resisting unfair laws. A structural analysis of the internalization of collective preferences on redistribution using classification trees and random forests," Working Papers hal-04141635, HAL.
    18. Akbaş, Merve & Ariely, Dan & Yuksel, Sevgi, 2019. "When is inequality fair? An experiment on the effect of procedural justice and agency," Journal of Economic Behavior & Organization, Elsevier, vol. 161(C), pages 114-127.
    19. Alesina, Alberto & Giuliano, Paola, 2009. "Preferences for Redistribution," IZA Discussion Papers 4056, Institute of Labor Economics (IZA).
    20. Jones, Luke & Cseh, Attila, 2021. "Earning responsibility increases risk taking among representative decision makers," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 317-329.

    More about this item

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations

    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:noj:journl:v:40:y:2015:p:3. 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: Halvor Mehlum (email available below). General contact details of provider: http://www.nopecjournal.org .

    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.