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How Property Shapes Distributional Preferences

Author

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  • Fabbri, Marco

    (Universitat Pompeu Fabra)

  • Bigoni, Maria

    (University of Bologna)

Abstract

We study how distributional preferences are affected by a major property rights reform that transformed informal use-rights over land traditionally characterizing rural Beninese villages in a system akin to private ownership. The design combines the randomized control-trial implementation of the reform across villages with lab-in-the-field experiments eliciting villagers' distributional choices – both when luck is the source of situational inequality and when an unequal distribution is originated by merit considerations. Results show that reforming allocation rules in the direction of impersonal market-alike institutions increases participants' acceptance of inequality determined by luck, while leaving participants' tolerance for inequality generated by merit unaffected.

Suggested Citation

  • Fabbri, Marco & Bigoni, Maria, 2021. "How Property Shapes Distributional Preferences," IZA Discussion Papers 14768, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14768
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    More about this item

    Keywords

    fairness; institutional change; lab-in-the-field experiment; land tenure reform; land titling;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles

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