Inequality and Relative Ability Beliefs

• 成果类型: Article
• 署名作者: Butler, Jeffrey V.
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/ecoj.12175
• 发表日期: 2016
• 页码: 907-948
• 关键词: world; performance; overconfidence; INFORMATION; COMPETITION; aversion

摘要

I present experimental evidence for a novel mechanism yielding inequality persistence. Just world beliefs research suggests that individuals believe they merit unequal treatment they experience. Merit depends on ability and effort so that disadvantage (advantage) may undermine (bolster) confidence in own relative ability. Because decisions determining economic success rely on such beliefs (e.g. competitiveness), inequality may self-perpetuate. In multiple experiments, I randomly assign unequal pay for an identical task where performance depends on cognitive ability. I find that pay level consistently and substantially affects beliefs but not performance. Finally, I show that among males high pay increases competitiveness by 33%.