Luck or merit? Not all inequality is equally acceptable
Do you think it's fair that some people are better off financially than others? Does it perhaps matter whether those earnings stem from a lottery win or hard work? These are the kinds of questions economist Ingvild Almås of the University of Zurich is exploring.
A recent study published in The Quarterly Journal of Economics has delved into the complex issue of inequality and how it is perceived globally. Economist Ingvild Almås from the University of Zurich, along with her Norwegian colleagues, surveyed 65,000 individuals from 60 countries, representing 80% of the world's population. The research aimed to understand why people accept varying levels of inequality and under what conditions they support redistribution measures such as higher taxes on the wealthy.
The findings revealed that people around the world are more likely to accept unequal distribution of wealth if it is based on merit rather than pure chance. This preference for merit-based fairness was particularly strong in countries with rich democracies, high equality levels, and individualistic cultures. Switzerland served as a prime example in the study, with a significant acceptance of merit-based inequality.
However, the researchers also noted that acceptance of unequal wealth distribution based on luck, especially non-Western countries like China and India, is strikingly different. While Western countries tend to oppose redistribution of wealth gained through chance, many populations in non-Western countries, particularly China and India, were not opposed to such redistribution. This difference in attitudes can be attributed to cultural and religious factors that will be explored in future studies.
The study also touched upon the economic aspect of inequality, suggesting that the cost of redistribution (in terms of reduced work output from high earners) may play a smaller role in global acceptance than the source of inequality itself—whether it is merit-based or based on luck. The results of this research, which primarily focus on non-WEIRD (Western, educated, industrialized, rich, and democratic) societies, highlight the importance of examining human behavior beyond the confines of traditional Western perspectives.
The findings provide valuable insights into how societies morally justify inequality and how this justification can influence attitudes towards redistribution efforts.
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