Do Institutions Affect Social Preferences? Evidence from Divided Korea
AbstractThe Cold War division of Korea, regarded as a natural experiment in institutional change, provides a unique opportunity to examine whether institutions affect social preferences. We recruited North Korean refugees and South Korean students to conduct laboratory experiments eliciting social preferences, together with standard surveys measuring subjective attitudes toward political and economic institutions. Our experiments employ widely used dictator and trust games, with four possible group matches between North and South Koreans by informing them of the group identity of their anonymous partners. Experimental behavior and support for institutions differ substantially between and within groups. North Korean refugees prefer more egalitarian distribution in the dictator games than South Korean students, even after controlling for individual characteristics that could be correlated with social preferences; however, two groups show little difference in the trust game, once we control for more egalitarian behavior of North Koreans. North Korean refugees show less support for market economy and democracy than South Korean subjects. Attitudes toward institutions are more strongly associated with the experimental behaviors among South Korean subjects than among North Korean subjects.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7567.
Length: 48 pages
Date of creation: Aug 2013
Date of revision:
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Other versions of this item:
- Byung-Yeon Kim & Syngjoo Choi & Jungmin Lee & Sokbae 'Simon' Lee & Kyunghui Choi, 2013. "Do institutions affect social preferences? Evidence from divided Korea," CeMMAP working papers, Centre for Microdata Methods and Practice, Institute for Fiscal Studies CWP35/13, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
- P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-06 (All new papers)
- NEP-CBE-2013-09-06 (Cognitive & Behavioural Economics)
- NEP-EVO-2013-09-06 (Evolutionary Economics)
- NEP-EXP-2013-09-06 (Experimental Economics)
- NEP-POL-2013-09-06 (Positive Political Economics)
- NEP-SOC-2013-09-06 (Social Norms & Social Capital)
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.:
- Marcus Noland & Stephan Haggard, 2011. "Witness to Transformation: Refugee Insights into North Korea," Peterson Institute Press: All Books, Peterson Institute for International Economics, Peterson Institute for International Economics, number 4389, July.
- James Andreoni & John Miller, 2002. "Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism," Econometrica, Econometric Society, Econometric Society, vol. 70(2), pages 737-753, March.
- Michal Bauer & Julie ChytilovÃ¡ & Barbara Pertold-Gebicka, 2012.
"Parental Background and Other-Regarding Preferences in Children,"
Working Papers IES, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies
2012/10, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Apr 2012.
- Michal Bauer & Julie ChytilovÃ¡ & Barbara Pertold-Gebicka, 2014. "Parental background and other-regarding preferences in children," Experimental Economics, Springer, Springer, vol. 17(1), pages 24-46, March.
- Cox, James C., 2004. "How to identify trust and reciprocity," Games and Economic Behavior, Elsevier, Elsevier, vol. 46(2), pages 260-281, February.
- BÃ©nabou, Roland & Tirole, Jean, 2011.
"Laws and Norms,"
CEPR Discussion Papers, C.E.P.R. Discussion Papers
8663, C.E.P.R. Discussion Papers.
- Chaim Fershtman & Uri Gneezy, 2001.
"Discrimination In A Segmented Society: An Experimental Approach,"
The Quarterly Journal of Economics, MIT Press,
MIT Press, vol. 116(1), pages 351-377, February.
- Fershtman, C. & Gneezy, U., 2000. "Discrimination in a Segmented Society: an Experimental Approach," Papers, Tel Aviv 2000-9, Tel Aviv.
- Algan, Yann & Cahuc, Pierre, 2014.
"Trust, Growth, and Well-Being: New Evidence and Policy Implications,"
Handbook of Economic Growth,
in: Handbook of Economic Growth, edition 1, volume 2, chapter 2, pages 49-120
- Algan, Yann & Cahuc, Pierre, 2013. "Trust, Growth and Well-being: New Evidence and Policy Implications," IZA Discussion Papers 7464, Institute for the Study of Labor (IZA).
- Algan, Yann & Cahuc, Pierre, 2013. "Trust, Growth and Well-Being: New Evidence and Policy Implications," CEPR Discussion Papers, C.E.P.R. Discussion Papers 9548, C.E.P.R. Discussion Papers.
- Dawes, Christopher T. & Johannesson, Magnus & Lindqvist, Erik & Loewen, Peter & Ã–stling, Robert & Bonde, Marianne & Priks, Frida, 2012. "Generosity and Political Preferences," Working Paper Series, Research Institute of Industrial Economics 941, Research Institute of Industrial Economics.
- Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
- Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(4), pages 1251-88, November.
- Gachter, Simon & Herrmann, Benedikt & Thoni, Christian, 2004. "Trust, voluntary cooperation, and socio-economic background: survey and experimental evidence," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 55(4), pages 505-531, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.