Attitudes to inequality: preferences and beliefs

Abstract

Abstract To understand attitudes to inequality, we need to study people’s fairness preferences and beliefs about the sources of inequality. This article reviews the existing experimental literature on fairness, including our new study ‘Fairness Across the World’ that collected novel data on attitudes to inequality in 60 countries. We establish that people in general are more willing to accept inequalities that reflect differences in performance than inequalities that reflect differences in luck—and that people care more about fairness than efficiency. We also document that people differ in their fairness preferences both within and between countries. Richer countries are more meritocratic, and, correspondingly, richer people are more meritocratic within countries. People also differ in their beliefs about the sources of inequality both between and within countries, and the evidence is consistent with people having a self-serving bias in beliefs.

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