Luck or Merit? Not All Inequality Is Equally Acceptable
Inequality in earnings attracts attention across the globe. A new study by Ingvild Almås has examined when people consider something fair (and when not).
Do you think it’s fair that some people are better off financially than others? Does it perhaps matter whether that earnings stems from a lottery win or from hard work? These are the kinds of questions that the economist Ingvild Almås of the University of Zurich is exploring. She wants to understand why people around the world are willing to accept inequality – and under what conditions they support redistribution, such as through higher taxes on the wealthy.
“Inequality is an important global issue. A key question is how inequality is morally justified in the society,” says Almås. Her recently published study, conducted in collaboration with Norwegian colleagues, shows that there are significant differences between countries in this regard. “People consider varying degrees of inequality to be acceptable and also have different justifications for doing so.”
Surveying almost the entire world
The study included a total of 65,000 people from sixty countries, covering eighty percent of the world’s population. For example, participants were asked to decide on what foundation real workers on an online labor market platform should receive a bonus – based on their performance or through a random lottery. The study also examined the extent to which people support the redistribution of wealth – for instance, through higher taxes on the wealthy or other policy measures.
To the official UZH press release
To the paper
Ingvild Almås' website