Chance versus choice: eliciting attitudes to fair compensations
This paper reports an experiment designed to elicit social preferences over income compensation schemes, where income differences between subjects have two independent components: one due to chosen effort and the other due to random chance. These differences can be compensated through social dividends, according to principles chosen beforehand by subjects themselves from behind a stylised Rawlsian veil of ignorance, or outside the society on which the principles will be implemented. We test the attractiveness in particular of Luck Egalitarianism, compensating inequalities due to chance but not those due to choice. We find modest but not overwhelming support for these principles, suggesting that subjectsâ€™actual preferences are more complex.
|Date of creation:||Jul 2013|
|Contact details of provider:|| Postal: Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom|
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- Fredrik Andersson & Carl Hampus Lyttkens, 1999. "Preferences for equity in health behind a veil of ignorance," Health Economics, John Wiley & Sons, Ltd., vol. 8(5), pages 369-378.
- Bukszar, Ed & Knetsch, Jack L, 1997. "Fragile Redistribution Choices behind a Veil of Ignorance," Journal of Risk and Uncertainty, Springer, vol. 14(1), pages 63-74, January. Full references (including those not matched with items on IDEAS)
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