Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/79527
Authors: 
Kim, Byung-Yeon
Choi, Syngjoo
Lee, Jungmin
Lee, Sokbae
Choi, Kyunghui
Year of Publication: 
2013
Series/Report no.: 
cemmap working paper, Centre for Microdata Methods and Practice CWP35/13
Abstract: 
The Cold War division of Korea, regarded as a natural experiment in institutional change, provides a unique opportunity to examine whether institutions affect social preferences. We recruited North Korean refugees and South Korean students to conduct laboratory experiments eliciting social preferences, together with standard surveys measuring subjective attitudes toward political and economic institutions. Our experiments employ widely used dictator and trust games, with four possible group matches between North and South Koreans by informing them of the group identity of their anonymous partners. Experimental behaviour and support for institutions differ substantially between and within groups. North Korean refugees prefer more egalitatian distribution in the dictator games than South Korean students, even after controlling for individual characteristics that could be correlated with social preferences; however, the two groups show little difference in the trust game, once we control for more egalitarian behaviour of North Koreans. North Korean refugees show less support for market economy and democracy than South Korean subjects. Attitudes toward institutions are more strongly associated with the experimental behaviours among South Korean subjects than among North Korean subjects.
Subjects: 
social preferences
experiment
institutions
market economy
democracy
JEL: 
C92
C93
D03
P20
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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