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The Meritocratic Illusion: Inequality and the Cognitive Basis of Redistribution

Author

Listed:
  • Blouin, Arthur

    (University of Toronto)

  • Mani, Anandi

    (University of Oxford)

  • Mukand, Sharun W.

    (University of Warwick)

  • Sgroi, Daniel

    (University of Warwick & IZA)

Abstract

Can inequality in rewards result in an erosion in broad-based support for meritocratic norms? We hypothesize that unequal rewards between the successful and the rest, drives a cognitive gap in their meritocratic beliefs, and hence their social preferences for redistribution. Two separate experiments (one in the UK and the other in the USA) show that the elite develop and maintain “meritocratic bias†in the redistributive taxes they propose, even when not applied to their own income: lower taxes on the rich and fewer transfers to the poor, including those who failed despite high effort. These social preferences at least partially reflect a self-serving meritocratic illusion that their own high income was deserved. A Wason Card task confirms that individuals maintain their illusion of being meritocratic, by not expending cognitive effort to process information that may undermine their self-image even when incentivized to do otherwise.

Suggested Citation

  • Blouin, Arthur & Mani, Anandi & Mukand, Sharun W. & Sgroi, Daniel, 2024. "The Meritocratic Illusion: Inequality and the Cognitive Basis of Redistribution," CAGE Online Working Paper Series 717, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:717
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    References listed on IDEAS

    as
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    2. 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.
    3. 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.
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    More about this item

    Keywords

    Inequality; Meritocracy; Redistribution; Populism; Motivated Reasoning; Social Preferences JEL Classification:;
    All these keywords.

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