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Automation anxiety, fairness perceptions, and redistribution: Past experiences condition the response to future job loss

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  • Jeffrey, Karen
  • Matakos, Konstantinos

Abstract

Do beliefs about fairness interact with past experiences of labor market shocks to condition redistributive preferences? In a large-scale survey experiment, we investigate the effect of informing individuals that growth in automation could disrupt labor markets in ways that are (possibly) viewed as unfair. We then exploit the COVID-19-induced labor market shock to test for an interaction between treatments and shock exposure. We find that beliefs interact with shock exposure to increase redistributive preferences and commitments to donate potential prize winnings. Our findings suggest this may be motivated by respondents' concerns about their vulnerability to future labor market shocks.

Suggested Citation

  • Jeffrey, Karen & Matakos, Konstantinos, 2024. "Automation anxiety, fairness perceptions, and redistribution: Past experiences condition the response to future job loss," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 174-190.
    • Handle: RePEc:eee:jeborg:v:221:y:2024:i:c:p:174-190
    DOI: 10.1016/j.jebo.2024.02.038
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    More about this item

    Keywords

    Automation; Inequality; Fairness; Shocks; Redistribution; COVID-19;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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