Inequality and Relative Ability Beliefs
AbstractIn this study I present experimental evidence of a novel channel yielding inequality persistence. In an initial experiment, results suggest that individuals respond to salient inequality by adjusting their performance beliefs to justify the inequality. Subsequent experiments reveal: i) that it is beliefs about relative ability, an ostensibly stable trait, rather than effort provision that respond to inequality; and that ii) unequal pay in an initial task affects willingness to compete on a subsequent task for male participants. Taken together, these patterns may cause inequality to become self-perpetuating. I conclude by discussing some implications of these findings.
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Bibliographic InfoPaper provided by Einaudi Institute for Economics and Finance (EIEF) in its series EIEF Working Papers Series with number 1305.
Length: 53 pages
Date of creation: 2013
Date of revision: Mar 2013
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-03-30 (All new papers)
- NEP-EVO-2013-03-30 (Evolutionary Economics)
- NEP-EXP-2013-03-30 (Experimental Economics)
- NEP-HPE-2013-03-30 (History & Philosophy of Economics)
- NEP-HRM-2013-03-30 (Human Capital & Human Resource Management)
- NEP-LTV-2013-03-30 (Unemployment, Inequality & Poverty)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Grossman, Zachary & Owens, David, 2010.
"An Unlucky Feeling: Overconfidence and Noisy Feedback,"
University of California at Santa Barbara, Economics Working Paper Series
qt13r2f3gt, Department of Economics, UC Santa Barbara.
- Grossman, Zachary & Owens, David, 2012. "An unlucky feeling: Overconfidence and noisy feedback," Journal of Economic Behavior & Organization, Elsevier, vol. 84(2), pages 510-524.
- Caroline M. Hoxby & Christopher Avery, 2012. "The Missing "One-Offs": The Hidden Supply of High-Achieving, Low Income Students," NBER Working Papers 18586, National Bureau of Economic Research, Inc.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Entrenching inequality
by chris dillow in Stumbling and Mumbling on 2013-04-04 14:11:33
- On endogenous preferences
by chris dillow in Stumbling and Mumbling on 2013-05-06 12:51:02
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