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Meta-Analysis of Inequality Aversion Estimates

Author

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  • Salvatore Nunnari
  • Massimiliano Pozzi

Abstract

We conduct an interdisciplinary meta-analysis to aggregate the knowledge from empirical estimates of inequality aversion reported from 1999 to 2022. In particular, we examine 85 estimates of disadvantageous inequality aversion (or envy) and advantageous inequality aversion (or guilt) from 26 articles in economics, psychology, neuroscience and computer science that structurally estimate the Fehr and Schmidt (1999) model of social preferences. Our meta-analysis supports the presence of inequality concerns: the mean envy coefficient is 0:426 with a 95% probability that the true value lies in the interval [0:240; 0:620]; the mean guilt coefficient is 0:290 with a 95% probability that the true value lies in the interval [0:212; 0:366]. Moreover, we observe high levels of heterogeneity, both across studies and across individuals, with estimated parameters sensitive to the experimental task and the subject population.

Suggested Citation

  • Salvatore Nunnari & Massimiliano Pozzi, 2022. "Meta-Analysis of Inequality Aversion Estimates," CESifo Working Paper Series 9851, CESifo.
    • Handle: RePEc:ces:ceswps:_9851
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp9851.pdf
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    References listed on IDEAS

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    Cited by:

    1. Alger, Ingela, 2022. "Evolutionarily stable preferences," TSE Working Papers 22-1355, Toulouse School of Economics (TSE), revised Dec 2022.
    2. Bohmann, Sandra & Kalleitner, Fabian, 2023. "Subjective Inequity Aversion: Unfair Inequality, Subjective Well-Being, and Preferences for Redistribution," SocArXiv g8arw, Center for Open Science.
    3. Carpenter, Jeffrey P. & Robbett, Andrea, 2022. "Measuring Socially Appropriate Social Preferences," IZA Discussion Papers 15590, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    social preferences; inequality aversion; inequity aversion; envy; guilt; meta-analysis; multi-level random-effects model; Bayesian hierarchical model;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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