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.
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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:
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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 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)
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