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(In-)equality of Opportunity, Fairness, and Distributional Preferences

Author

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  • Dietmar Fehr
  • Daniel Müller
  • Marcel Preuss

Abstract

This paper examines how perceived importance of family background affect distributional pref-erences using two large-scale survey experiments. In the first experiment, we randomly inform respondents about the relationship between parental income and economic success later in life, which renders their perceptions of equality of opportunity more pessimistic. However, this changes neither revealed distributional preferences nor pro-social behavior toward the rich and poor. The second experiment shows that respondents do not account for parental influence on economic success when making (re-)distribution decisions, suggesting that people view parental influence as a legitimate reason to justify some inequality. This can explain why distributional preferences are immune to changes in perceptions of equality of opportunity.

Suggested Citation

  • Dietmar Fehr & Daniel Müller & Marcel Preuss, 2022. "(In-)equality of Opportunity, Fairness, and Distributional Preferences," CESifo Working Paper Series 10001, CESifo.
    • Handle: RePEc:ces:ceswps:_10001
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp10001.pdf
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    References listed on IDEAS

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    1. Stockhausen, Maximilian, 2017. "Wie der Vater, so der Sohn? Zur intergenerationalen Einkommensmobilität in Deutschland [Like father, like son? On intergenerational income mobility in Germany]," IW-Trends – Vierteljahresschrift zur empirischen Wirtschaftsforschung, Institut der deutschen Wirtschaft (IW) / German Economic Institute, vol. 44(4), pages 57-74.
    2. Daniel D. Schnitzlein, 2016. "A New Look at Intergenerational Mobility in Germany Compared to the U.S," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(4), pages 650-667, December.
    3. Alberto Alesina & Stefanie Stantcheva & Edoardo Teso, 2018. "Intergenerational Mobility and Preferences for Redistribution," American Economic Review, American Economic Association, vol. 108(2), pages 521-554, February.
    4. Jeffrey R Kling & Jeffrey B Liebman & Lawrence F Katz, 2007. "Experimental Analysis of Neighborhood Effects," Econometrica, Econometric Society, vol. 75(1), pages 83-119, January.
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    Cited by:

    1. Marcel Preuss & Germán Reyes & Jason Somerville & Joy Wu, 2023. "Inequality of Opportunity and Income Redistribution," CEDLAS, Working Papers 0309, CEDLAS, Universidad Nacional de La Plata.
    2. Marcel Preuss & Germán Reyes & Jason Somerville & Joy Wu, 2024. "Inequality of Opportunity and Income Redistribution," CRC TR 224 Discussion Paper Series crctr224_2024_491, University of Bonn and University of Mannheim, Germany.
    3. Marcel Preuss & Germán Reyes & Jason Somerville & Joy Wu, 2023. "Inequality of Opportunity and Income Redistribution," CESifo Working Paper Series 10383, CESifo.

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    More about this item

    Keywords

    distributional preferences; inequality of opportunity; social mobility; survey experiment;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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