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Equality-Efficiency Trade-off within French and German Couples - A Comparative Experimental Study

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Listed:
  • Beblo, Miriam
  • Beninger, Denis
  • Cochard, Francois
  • Couprie, Helene
  • Hopfensitz, Astrid

Abstract

We present the results of an experiment that measures social preferences within couples in a context where intra-household pay-off inequality can be reduced at the cost of diminishing household income. We measure social norms regarding this efficiency-equality trade-off and implement a cross-country comparison between France and Germany. In particular, we show that German households are more inequality averse and are thus less efficient than French households. A decomposition of this difference reveals that approximately 40% is driven by diverging sample compositions in the two countries, while 60% of the initial French/German difference remains unexplained. Beliefs differ significantly from observed behavior in both countries. Efficient choices are overestimated in the German sample and underestimated in the French.

Suggested Citation

  • Beblo, Miriam & Beninger, Denis & Cochard, Francois & Couprie, Helene & Hopfensitz, Astrid, 2013. "Equality-Efficiency Trade-off within French and German Couples - A Comparative Experimental Study," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79759, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc13:79759
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    Cited by:

    1. Gurven, Michael & Hopfensitz, Astrid & Kaplan, Hillard & Stieglitz, Jonathan, 2016. "Why household inefficiency? An experimental approach to assess spousal resource distribution preferences in a subsistence population undergoing socioeconomic change," IAST Working Papers 16-36, Institute for Advanced Study in Toulouse (IAST).
    2. repec:kap:reveho:v:15:y:2017:i:3:d:10.1007_s11150-016-9342-0 is not listed on IDEAS

    More about this item

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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