Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7356959 | Journal of Comparative Economics | 2017 | 24 Pages |
Abstract
The division of Korea is a historic social experiment that randomly assigned ex ante identical individuals into two different economic and political institutions. About 70 years after the division, we sample Koreans who were born and raised in the two different parts of Korea to study whether institutions affect social preferences. We find that those from North Korea behave in a less self-interested manner and support the market economy and democracy less than those from South Korea. A follow-up study shows that social preferences did not change considerably in two years. We check robustness against sample selection and potential confounding factors such as income differences. Our findings indicate that preferences are rooted in institutions.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Byung-Yeon Kim, Syngjoo Choi, Jungmin Lee, Sokbae Lee, Kyunghui Choi,