Which Inequality? The Inequality of Endowments versus the Inequality of Rewards

• 成果类型: Article
• 署名作者: Hopkins, Ed; Kornienko, Tatiana
• 署名单位: University of Edinburgh
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• DOI: 10.1257/mic.2.3.106
• 发表日期: 2010
• 页码: 106-137
• 关键词: competitive equality; opportunity; tournaments; happiness; HEALTH

摘要

We introduce a new distinction between inequality in initial endowments (e.g., ability, inherited wealth) and inequality of what one can obtain as rewards (e.g., prestigious positions, money). We show that, when society allocates resources via tournaments, these two types of inequality have opposing effects on equilibrium behavior and well-being. Greater inequality of rewards hurts most people both the middle class and the poor who are forced into greater effort. Conversely, greater inequality of endowments benefits the middle class. Thus, the correctness of our intuitions about the implications of inequality is hugely affected by the type of inequality considered.