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How much are you willing to sacrifice to reduce inequality?: An experimental analysis of individuals’ preferences for inequality in income and health.
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
2017 (English)Independent thesis Advanced level (degree of Master (Two Years)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This paper deals with individuals’ preferences for social outcomes in the context of income and health. Individual’s preferences are measured through experimental choices between imagined societies in a risk-free setting. Inequality literature often assumes inequality aversion and risk aversion to go hand in hand. Using a setting that is free from risk enables an examination of preferences for inequality without also reflecting preferences for risk. The results show that most people do have inequality averse preferences, and hence have a willingness to pay for living in a more equal society. A political opinion to the left appears to be positively correlated with individual inequality aversion in the context of both income and health. Additionally, an educational background in sociology seems to be associated with a higher degree of income inequality aversion. 

Place, publisher, year, edition, pages
2017.
National Category
Economics
Identifiers
URN: urn:nbn:se:umu:diva-137364OAI: oai:DiVA.org:umu-137364DiVA: diva2:1118386
Available from: 2017-06-30 Created: 2017-06-30

Open Access in DiVA

fulltext(1138 kB)17 downloads
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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf