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Efficiency-Equality Trade-off within French and German Couples A Comparative Experimental Study

Listed author(s):
  • Miriam Beblo
  • Denis Beninger
  • François Cochard
  • Hélène Couprie
  • Astrid Hopfensitz

We present the results of an experiment measuring social preferences within couples in a context where intra-household pay-off inequality can be reduced at the cost of diminishing household income. We measure social norms regarding this efficiency-equality trade-off by reported beliefs on the behavior of peers, and we implement a cross-country comparison between France and Germany. In particular, we show that German households are more income inequality averse and thus less income-maximizing than French households. Decomposition reveals that diverging sample compositions in the two countries drive less than half of the difference, while over half of the initial French/German difference remains unexplained. Beliefs differ significantly from observed behavior in both countries. Income-maximizing choices are overestimated in the German sample and underestimated in the French.

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File URL: http://www.jstor.org/stable/10.15609/annaeconstat2009.117-118.233
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Article provided by GENES in its journal Annals Of Economics and Statistics.

Volume (Year): (2015)
Issue (Month): 117-118 ()
Pages: 233-252

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Handle: RePEc:adr:anecst:y:2015:i:117-118:p:233-252
DOI: 10.15609/annaeconstat2009.117-118.233
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