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Have Preferences Become More Similar Worldwide?

Author

Listed:
  • Rainer Kotschy

    (Harvard T.H. Chan School of Public Health, Boston)

  • Uwe Sunde

    (LMU Munich)

Abstract

Recent evidence shows substantial heterogeneity in time, risk, and social preferences across and within populations; yet little is known about the dynamics of preference heterogeneity across generations. We apply a novel identification strategy based on dyadic differences in preferences using representative data for 80,000 individuals from 76 countries. Our results document that, among more recent birth cohorts, preferences are more similar across countries and gender gaps in preferences are smaller within countries. This decline in preference heterogeneity across cohorts relates to country-specific differences in preference endowments, population composition, and socioeconomic conditions during formative years, and points at global cultural convergence.

Suggested Citation

  • Rainer Kotschy & Uwe Sunde, 2023. "Have Preferences Become More Similar Worldwide?," Rationality and Competition Discussion Paper Series 436, CRC TRR 190 Rationality and Competition.
    • Handle: RePEc:rco:dpaper:436
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    References listed on IDEAS

    as
    1. Armin Falk & Anke Becker & Thomas Dohmen & David Huffman & Uwe Sunde, 2023. "The Preference Survey Module: A Validated Instrument for Measuring Risk, Time, and Social Preferences," Management Science, INFORMS, vol. 69(4), pages 1935-1950, April.
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    3. Ulrike Malmendier & Stefan Nagel, 2011. "Depression Babies: Do Macroeconomic Experiences Affect Risk Taking?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(1), pages 373-416.
    4. Pablo Brañas-Garza & Diego Jorrat & Antonio M. Espín & Angel Sánchez, 2023. "Paid and hypothetical time preferences are the same: lab, field and online evidence," Experimental Economics, Springer;Economic Science Association, vol. 26(2), pages 412-434, April.
    5. Kosfeld, Michael & Sharafi, Zahra, 2022. "The Preference Survey Module: New Evidence on Social Preferences from Tehran," IZA Discussion Papers 15006, Institute of Labor Economics (IZA).
    6. Falk, Armin & Hermle, Johannes, 2018. "Relationship of Gender Differences in Preferences to Economic Development and Gender Equality," IZA Discussion Papers 12059, Institute of Labor Economics (IZA).
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    More about this item

    Keywords

    cohort effects; patience; willingness to take risks;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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