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Efficiency versus fairness: The evaluation of labor market policies by economists and laypeople

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  • Haferkamp, Alexandra
  • Fetchenhauer, Detlef
  • Belschak, Frank
  • Enste, Dominik

Abstract

The present study examines the criteria used by economic laypeople (NÂ =Â 380 German citizens) and economists (NÂ =Â 80 professors or postgraduates in economics) in judging reform measures as illustrated by policies of governmental labor market intervention policies. Results reveal substantial differences between economists and laypeople. Most laypersons favored labor market interventions and regarded them as both, efficient and fair. In contrast, most economists opposed labor market interventions and regarded them as both, inefficient and unfair. Using structural equation modelling we further show that the relative importance of efficiency and fairness differs between both groups. While economists base the acceptance of a certain reform measure mainly on its perceived efficiency, laypersons mainly focus on its perceived fairness. Theoretical and practical implications of our results are discussed.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Psychology.

Volume (Year): 30 (2009)
Issue (Month): 4 (August)
Pages: 527-539

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Handle: RePEc:eee:joepsy:v:30:y:2009:i:4:p:527-539

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Web page: http://www.elsevier.com/locate/joep

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Keywords: Fairness Efficiency Reform measure Cognitive biases Moral principles;

References

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Citations

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Cited by:
  1. Jacob, Robert & Christandl, Fabian & Fetchenhauer, Detlef, 2011. "Economic experts or laypeople? How teachers and journalists judge trade and immigration policies," Journal of Economic Psychology, Elsevier, vol. 32(5), pages 662-671.
  2. Gangl, Katharina & Kastlunger, Barbara & Kirchler, Erich & Voracek, Martin, 2012. "Confidence in the economy in times of crisis: Social representations of experts and laypeople," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 603-614.
  3. Lotz, Sebastian & Fix, Andrea R., 2013. "Not all financial speculation is treated equally: Laypeople’s moral judgments about speculative short selling," Journal of Economic Psychology, Elsevier, vol. 37(C), pages 34-41.
  4. Dominik H. Enste & Alexandra Haferkamp & Detlef Fetchenhauer, 2009. "Unterschiede im Denken zwischen Ökonomen und Laien - Erklärungsansätze zur Verbesserung der wirtschaftspolitischen Beratung," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 10(1), pages 60-78, 02.
  5. Amélie Goossens & Pierre-Guillaume Méon, 2010. "The impact of studying economics, and other disciplines, on the belief that voluntary exchange makes everyone better off," Working Papers CEB 10-012.RS, ULB -- Universite Libre de Bruxelles.
  6. Haucap, Justus & Müller, Andrea, 2014. "Why are economists so different? Nature, nurture, and gender effects in a simple trust game," DICE Discussion Papers 136, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  7. Christandl, Fabian & Fetchenhauer, Detlef & Hoelzl, Erik, 2011. "Price perception and confirmation bias in the context of a VAT increase," Journal of Economic Psychology, Elsevier, vol. 32(1), pages 131-141, February.
  8. Schnellenbach, Jan & Schubert, Christian, 2014. "Behavioral public choice: A survey," Freiburg Discussion Papers on Constitutional Economics 14/03, Walter Eucken Institut e.V..

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