Do institutions affect social preferences? Evidence from divided Korea
The 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 behaviour 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, the two groups show little difference in the trust game, once we control for more egalitarian behaviour 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 behaviours among South Korean subjects than among North Korean subjects. An online appendix to accompany this publication is available here
|Date of creation:||Aug 2013|
|Date of revision:|
|Contact details of provider:|| Postal: The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE|
Phone: (+44) 020 7291 4800
Fax: (+44) 020 7323 4780
Web page: http://cemmap.ifs.org.uk
More information through EDIRC
|Order Information:|| Postal: The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1251-1288.
- Cox, James C., 2004. "How to identify trust and reciprocity," Games and Economic Behavior, Elsevier, vol. 46(2), pages 260-281, February.
- Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
- James Andreoni & John Miller, 2002. "Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism," Econometrica, Econometric Society, vol. 70(2), pages 737-753, March.
- Chaim Fershtman & Uri Gneezy, 2001. "Discrimination in a Segmented Society: An Experimental Approach," The Quarterly Journal of Economics, Oxford University Press, vol. 116(1), pages 351-377.
- Marcus Noland & Stephan Haggard, 2011. "Witness to Transformation: Refugee Insights into North Korea," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4389.
- Michal Bauer & Julie Chytilová & Barbara Pertold-Gebicka, 2012.
"Parental Background and Other-Regarding Preferences in Children,"
Working Papers IES
2012/10, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Apr 2012.
- Michal Bauer & Julie Chytilová & Barbara Pertold-Gebicka, 2014. "Parental background and other-regarding preferences in children," Experimental Economics, Springer, vol. 17(1), pages 24-46, March.
- Gachter, Simon & Herrmann, Benedikt & Thoni, Christian, 2004. "Trust, voluntary cooperation, and socio-economic background: survey and experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 55(4), pages 505-531, December.
- Benabou, Roland & Tirole, Jean, 2012.
"Laws and Norms,"
IZA Discussion Papers
6290, Institute for the Study of Labor (IZA).
- Algan, Yann & Cahuc, Pierre, 2013.
"Trust, Growth and Well-Being: New Evidence and Policy Implications,"
CEPR Discussion Papers
9548, C.E.P.R. Discussion Papers.
- Algan, Yann & Cahuc, Pierre, 2014. "Trust, Growth, and Well-Being: New Evidence and Policy Implications," Handbook of Economic Growth, in: Handbook of Economic Growth, edition 1, volume 2, chapter 2, pages 49-120 Elsevier.
- Algan, Yann & Cahuc, Pierre, 2013. "Trust, Growth and Well-being: New Evidence and Policy Implications," IZA Discussion Papers 7464, Institute for the Study of Labor (IZA).
- Dean S. Karlan, 2005. "Using Experimental Economics to Measure Social Capital and Predict Financial Decisions," Working Papers 182, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
- Dawes, Christopher T. & Johannesson, Magnus & Lindqvist, Erik & Loewen, Peter & Östling, Robert & Bonde, Marianne & Priks, Frida, 2012. "Generosity and Political Preferences," Working Paper Series 941, Research Institute of Industrial Economics.
- repec:pri:rpdevs:gamespaper.pdf is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:ifs:cemmap:35/13. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Emma Hyman)
If references are entirely missing, you can add them using this form.