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

Abstract : We present the results of an experiment measuring 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 by reported beliefs about the behavior of peers, and we implement a cross-country comparison between France and Germany. In particular, we show that German households are more income-inequality averse and thus less income-maximizing than French households. Decomposition reveals that diverging sample compositions in the two countries drive less than half of the difference, while over half of the initial French/German difference remains unexplained. Beliefs differ significantly from observed behavior in both countries. Income-maximizing choices are overestimated in the German sample and underestimated in the French.
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https://hal-cyu.archives-ouvertes.fr//hal-02980029
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Submitted on : Tuesday, October 27, 2020 - 1:25:26 PM
Last modification on : Monday, December 13, 2021 - 1:38:33 PM

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Hélène Couprie, M. Beblo, D. Beninger, F. Cochard. Equality-efficiency Trade-off within French and German Couples – A Comparative Experimental Study. Annals of Economics and Statistics, CNGP-INSEE, 2015, pp.233-252. ⟨10.15609/annaeconstat2009.117-118.233⟩. ⟨hal-02980029⟩

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