Research on Economic Inequality
Inequality, Welfare and Income Distribution: Experimental Approaches
Edited by
Emerald Group Publishing Limited
Volume
11
ISBN electronic:
978-1-84950-276-4
ISBN print:
978-0-76231-113-2
Series ISSN:
1049-2585
Publication date:
2004
Book Chapter
ON THE ATTITUDE TOWARDS INEQUALITY
Liema Davidovitz
Yoram Kroll
© Emerald Group Publishing Limited
2004
-
Published:2004
Citation
Liema Davidovitz, Yoram Kroll, 2004. "ON THE ATTITUDE TOWARDS INEQUALITY", Inequality, Welfare and Income Distribution: Experimental Approaches, Frank Cowell
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© Emerald Group Publishing Limited
2004
This paper presents an experimental framework for separating the attitude toward inequality from the attitude toward risk. This exploratory experimental study examines the attitude toward inequality while keeping risk constant. The results support the hypothesis of inequality aversion only among middle-income subjects. More interestingly we found that higher equality motivates individuals to take more risk and challenge. This result is a counterpoint to the standard line that inequality is needed to encourage effort.
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