Monday, April 10, 2017

Fair Inequality

In an interesting review piece in Nature Human Behavior, Starmans et al argue that, in realistic settings involving large groups, people show a preference for "fair inequality" over "unfair equality" in economic terms. The studies with children are the most interesting because studies involving adults are probably too confounded by political leanings and social norms.

"There is immense concern about economic inequality, both among the scholarly community and in the general public, and many insist that equality is an important social goal. However, when people are asked about the ideal distribution of wealth in their country, they actually prefer unequal societies. We suggest that these two phenomena can be reconciled by noticing that, despite appearances to the contrary, there is no evidence that people are bothered by economic inequality itself. Rather, they are bothered by something that is often confounded with inequality: economic unfairness. Drawing upon laboratory studies, cross-cultural research, and experiments with babies and young children, we argue that humans naturally favour fair distributions, not equal ones, and that when fairness and equality clash, people prefer fair inequality over unfair equality. Both psychological research and decisions by policymakers would benefit from more clearly distinguishing inequality from unfairness."

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