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North Korean refugees’ implicit bias against South Korea predicts market earnings

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  • Choi, Syngjoo
  • Hahn, Kyu Sup
  • Kim, Byung-Yeon
  • Lee, Eungik
  • Lee, Jungmin
  • Lee, Sokbae

Abstract

This paper investigates whether experiences of living in a communist regime relate to low market earnings. We recruit North Korean refugees and measure their implicit bias against South Korea by using the Implicit Association Test. Conducting double auction and bilateral bargaining market experiments, we find that North Korean refugees with a larger bias against South Korea have lower expectations about their earning potential, exhibit trading behavior with lower target profits, and earn less profits. These associations are robust to conditioning on correlates of preferences, human capital, and assimilation experiences.

Suggested Citation

  • Choi, Syngjoo & Hahn, Kyu Sup & Kim, Byung-Yeon & Lee, Eungik & Lee, Jungmin & Lee, Sokbae, 2024. "North Korean refugees’ implicit bias against South Korea predicts market earnings," Journal of Development Economics, Elsevier, vol. 169(C).
    • Handle: RePEc:eee:deveco:v:169:y:2024:i:c:s0304387824000257
    DOI: 10.1016/j.jdeveco.2024.103276
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    1. Cho, Yongshin & Kim, Taekbin, 2025. "Seeing disparity: Marketization and perceived inequality in North Korea," World Development, Elsevier, vol. 196(C).

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    JEL classification:

    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • P5 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems

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