Choice set,relative income,and inequity aversion: An experimental investigation

Inequity aversion preference has been widely applied in interpretations of various economic behaviors. A rapidly growing literature has been attempting to measure the strength of inequity aversion preferences as accurately as possible. We vary two factors that might affect the accuracy of the measurement of inequity aversion preference, i.e., choice sets with different underlying inequity aversion strength ranges and with different relative income inequities while absolute income inequities remain fixed. We find that unidirectional changes in the choice sets for disadvantageous and advantageous inequity aversion preferences significantly bias the measured strength of both preferences in the same directions of the changes and that the variance in inequity aversion increases with the range of choice sets. Moreover, a decrease in relative income inequity raises the measured strength of advantageous inequity aversion but does not affect disadvantageous inequity aversion preference. Our results suggest controlling for choice sets and relative income inequity between players to improve the measurement accuracy of inequity aversion preference.     

AFTER THE TOURNAMENT: OUTCOMES AND EFFORT PROVISION

Outcomes of workplace competitions may themselves influence subsequent behavior—particularly if employees feel wronged. In a laboratory experiment, we find that—consistent with inequity aversion—tournament losers supply less postcompetition effort than winners when doing so reduces their tournament opponent's earnings. Consistent with procedural fairness concerns, subjects who lose arbitrarily decided tournaments that disregard tournament effort choices supply even less post‐tournament effort than other losers. While losers' effort reductions consistent with inequity aversion persist, effort reductions following arbitrarily decided tournaments fade over time. Finally, we show that effort reductions related to inequity aversion could potentially be mitigated through workplace rotations. (JEL C90, J30, D03)     

Equity and Social Exchange in Dating Couples: Associations With Satisfaction,Commitment, and Stability

A longitudinal study with romantic couples was conducted to examine the importance of equity relative to other social exchange variables (i.e., rewards, investments, and alternatives) in predicting relationship satisfaction, commitment, and stability. Underbenefiting inequity (but not overbenefiting inequity) was associated with a lower level of satisfaction and commitment and a greater likelihood of breakup. However, little evidence was found that equity at one time predicted change in satisfaction and commitment. Slightly more evidence was found for a reverse causal direction: Satisfaction and commitment contributed to a decrease in underbenefiting inequity, although these results were not consistent across time. Women's commitment was the strongest predictor of relationship stability. In addition, women's underbenefiting inequity and alternatives and men's alternatives were associated with breakups in some of the analyses, and women's rewards and satisfaction and men's satisfaction were associated with relationship stability in some of the analyses. Because of the multiple waves and the extended length of the longitudinal study, the findings make a unique contribution to the literature on equity and exchange.     

The influence of contextual variables on interpersonal spacing

Four studies examined the effects of contextual variables on interpersonal spacing. Contextual variables were defined as transitory factors that involved the setting in which an interaction occurs; these variables were delineated from personal and interpersonal characteristics. In each experimental setting, white male subjects were allowed to choose the distance at which they interacted with a stranger. The first study found that subjects who had experienced social isolation prior to the interaction chose greater distances than subjects who had not been isolated. The second study found that subjects chose greater distances when they believed their interaction would be observed by others than when the interaction was private. Results from the third study yielded an interaction between topic of conversation and expected length of conversation with greatest distance being chosen when subjects expected a long conversation to focus on a personal topic. In the final study, room size and shape influenced interpersonal distance; the interaction indicated that room size affected distance only in rectangular rooms. The results are discussed in terms of equilibrium model (Argyle & Dean, 1965). It is argued that contextual variables affect intimacy, and that the equilibrium model can explicate the effects of contextual as well as personal and interpersonal variables.The help of the following people in conducting the research and analyzing the data is gratefully acknowledged: Elizabeth Brown, Brad Reeves, Michael Satir, Sheryl Vaughn, Mary Holland, Quig Lawrence, William Webb, and Kerry Marsh. Thanks are also in order for an unusually thorough reviewer who raised a number of important issues.     

When culture and ethics meet: Understanding the dynamics between cultural dimensions,moral orientations,moral inequity,and commitment in the context of corporate misconduct allegations

This study explored the associations between individuals' cultural orientations, moral orientations, perceived moral inequity, and commitment to an organization accused of misconduct. An online survey was conducted among Singapore citizens (N = 477), exposing the participants to a fictitious vignette that included allegations of child labor abuse practices by their preferred company to understand their reactions to these allegations. Data analyses that individuals who report power distance also believe in consequentialism. There was a negative association between power distance and deontological thinking about how businesses should behave. People with high level of collectivism showed both consequentialist and deontological orientation. Whereas deontologists perceived the alleged misconduct as unethical, individuals with consequentialism did not. Consequentialists were willing to commit to their relationship with the organization despite the allegation. Finally, perceived moral inequity was negatively associated with commitment and fully mediated the relationship between deontology and commitment. Theoretical and empirical implications are discussed (150 words).     

An Examination of Employed Mothers' Work-Family Narratives and Perceptions of Husbands' Support

Abstract

In this study I examine the role of husbands' supportive communication practices in serving to mediate some of the common problems that are often experienced by employed mothers. The problems that are examined in this study are work-family conflict, stress, inequity in the division of labor, and double bind beliefs. Employed mothers completed open-ended narratives of recent work-family conflicts. Wives' perceptions of their husbands' supportive communication practices were examined in the narratives. Either the presence or absence of husbands' concern was related to women's perception of inequity and work-family conflict, while husbands' participation was related to double bind beliefs. Collectively, the husbands' support practices of minimizing child care concerns, avoidance of housework, expressions of concern about housework, and participation in child care accounted for 15% of the variance in women's marital satisfaction.     

Rural empowerment through the arts: The role of the arts in civic and social participation in the Mid West region of Western Australia

To combat social and economic inequity in rural Australia, governments, communities, and policy makers are seeking ways to empower local residents to find local solutions to local problems. Through an exploratory review of the literature and semi-structured interviews conducted in the Mid West of Western Australia, this research examined the role of the arts as a vehicle for increased social and civic participation to build resilience to inequity. For those interviewed, the arts were observed to strengthen sense of place and community identity. The arts were utilised as a means for encouraging and enabling civic participation, as well as providing opportunities for social interaction and networking, which are essential for the health and wellbeing of rural and remote residents. While providing a context for civic and social participation, the arts were viewed by several of those interviewed as a means for facilitating understanding between divisive and disparate groups. Yet, it was noted that the execution and drive for arts activities and events was dependent on the availability of human capital, but also on support from governance and funding authorities to build capacity to sustain these activities. If, as suggested by this exploratory review, the arts are a vehicle for building resilience in rural Australia, then further research is needed to support these claims to enable continued and future support for not just the arts, but the capacity of communities to engage in the arts.     

PERCEIVED EQUITY AND INTIMACY IN MARRIAGE

The extent to which perceived inequity is related to perceived marital intimacy was examined. Sixty-six couples married five years or less were randomly selected from marriage license records in a western rural community. Equity/inequity was assessed using the Walster global measure of equity. Levels of overall intimacy, conflict resolution, affection, cohesion, sexuality, identity, compatibility, autonomy, and expressiveness were measured using the Waring Intimacy Questionnaire (WIQ). Inequity was associated with lower levels of overall intimacy, compatibility, identity, and expressiveness among the wives. Among the husbands, inequity was not associated with any types of intimacy. When comparing husbands in inequitable relationships to wivwes in inequitable relationships, the wives reported lower scores for only one kind intimacy- identity . Explanations and implications for marriage therapy are discussed.     

Social Interaction in a Heterogeneous Apartment: An Investigation of the Effects of Environment upon Behavior

Abstract

This paper examines the relationship of propinquity (spatial proximity) to social interaction in a heterogeneous apartment, specifically, whether spatial propinquity or social homogeneity is the better explanation for resident interaction. We also examine the effects of other characteristics of the apartment design upon interaction patterns among apartment residents. Data are derived from in-depth structured personal interviews with residents of the apartment complex and are analyzed with standard sociometric techniques. Findings indicate that while propinquity and other design features may precipitate initial contact and interaction, this contact will remain superficial unless it is reinforced by shared social and demographic characteristics. The implications of these findings are discussed in light of the literature about the effects of the man-made environment upon behavior.     

Diana Gittins. The Child in Question. New York: St. Martin's Press, 1997. 231 Pages

Abstract

Does occupation-level information reflect what people actually do at work and thus influence individuals? I examine whether there is an effect of occupation-level complexity on individuals' sense of personal control, and if there is, whether the effect is a proxy for the actual work people do on their jobs. I analyze a national probability sample of 1,450 employed persons interviewed by telephone in 1995. Without adjustment for worker's reports of autonomy, creativity, authority, and social interaction in their daily work, an index of DOT occupational complexity of work with data and people correlates with the sense of personal control. Adjustment for job-level autonomy, creativity, authority, and social interaction renders the occupation-level measure insignificant and shows significant effects of autonomous work, creative work, and social interaction at work on the sense of personal control.     

Location,Vocation, Location? Spatial Entrapment among Women in Dual Career Households

This paper explores spatial entrapment among women. The analysis contributes to the debate concerning the spatial entrapment thesis, advancing research through application of a mixed method empirical approach, and focus on dual career households in the UK. Data from the UK Labour Force Survey Household Data‐Set is combined with a recent case study of Greater Nottingham, England. The empirical findings are indicative of relative equality between career men and women in hours worked for an employer, particularly in professional occupations. But, while a level of equality is present in many workplaces, gender inequity within the home persists. Women, on average, work closer to their place of residence. School age dependent children present a particular constraint. Women are spatially entrapped by household responsibilities, with potentially severe career implications. Redressing this inequity within the household, however, represents a major challenge for future policy.     

Inequity aversion revisited

Using a laboratory experiment, we study the predictive power of the Fehr–Schmidt (1999) model of inequity aversion and its robustness to reciprocity and stakes. We find stronger evidence for the model’s predictive power at the individual level than what the existing literature suggests. This finding is robust to stakes. However, the model’s predictive power is highly reduced if subjects can reciprocate others’ actions. This suggests that parameter estimates obtained in an environment that allows for reciprocal responses yield a bias in the parameter estimates. In particular, previous estimates (especially of the disutility of disadvantageous inequity aversion) may overestimate the importance of inequity aversion.     

Educational equity in ethnically diverse group work

Educational research in cooperative learning suggests that inequity based on perceived status may be an issue with heterogeneous cooperative learning groups. This paper explores issues of status based on race, ethnicity and cultural background in the New Zealand tertiary classroom where there is a diverse mix of domestic and international students. A four-year research project examined attitudes and perceptions of both domestic and international tertiary students towards cooperative learning. The findings of the research project indicate that initial assumptions of relative status and ability of group members have a major effect on the outcomes of the group. These assumptions, demonstrated by both domestic and international students, may be based on expectations of language ability and familiarity with the pedagogical environment, including the assumed norms and behavioural patterns of the host educational setting, and may disadvantage students from different cultural backgrounds. This can become a self-fulfilling prophecy limiting the effective interaction and participation in the group by international students and other students perceived to be of low status, and the development of trust and reciprocal interdependence among group members. Strategies to weaken the effects of status, promote more equitable interaction and foster productive group outcomes are proposed.     

Reciprocal relationships in tax compliance decisions

Reciprocity considerations are important to the tax compliance problem as they may explain the global dynamics of tax evasion, beyond individual tax evasion decisions, toward a downward or upward spiral. To provide evidence on reciprocity in tax compliance decisions, we have conducted a laboratory experiment in which we introduced two types of inequities. The first type of inequity is called vertical, because it refers to inequities introduced by the government when it sets different fiscal parameters for identical taxpayers, while the second type of inequity is called horizontal because it refers to the fact that taxpayers may differ in tax compliance decisions. In this setting, taxpayers may react to a disadvantageous or advantageous inequity through negative or positive reciprocal behaviors, respectively. Our results support the existence of negative and positive reciprocity in both vertical and horizontal cases. When both inequities come into play and may induce reciprocal behaviors in opposite directions, the horizontal always dominates the vertical.     

Split Custody

Through the use of data derived from a survey study, personal interviews, testing, and clinical interaction, an attempt is made to assess the self-perceptions of single fathers relative to a number of dimensions. Single fathers' perceptions about the health of their family structure, their marital status, their personal and parenting capacities, their role performance effectiveness, and their sexual concerns are explored.     

Psychological distress among black and white Americans: differential effects of social support, negative interaction and personal control

This study examines the relationships among social support, negative interaction, financial strain, traumatic events, personal control, personality, and psychological distress among African American and white adults. These analyses: (1) test the overall adequacy of various models (i.e., main, mediator, and artifactual effects) of these effects, (2) examine the role of social support and negative interaction within the context of financial strain and traumatic events, and (3) verify possible indirect effects of social interaction on distress by assessing their impact on personal control. Data from The National Comorbidity Survey were used to examine these relationships using structural equation modeling techniques. Findings indicated different models of these relationships for African Americans and whites. Overall, personal control mediated the relationship between negative interaction and psychological distress. For whites, negative interaction was an overall stronger predictor of distress and contributed to the impact of financial strain and traumatic events on psychological distress. Among African Americans, social support was a stronger predictor of distress. The findings suggest that the underlying models of these relationships are different for African Americans and whites.     

The Custodial Single Father

Through the use of data derived from a survey study, personal interviews, testing, and clinical interaction, an attempt is made to assess the self-perceptions of single fathers relative to a number of dimensions. Single fathers' perceptions about the health of their family structure, their marital status, their personal and parenting capacities, their role performance effectiveness, and their sexual concerns are explored.     

Traveling With the Ball Club: A Code of Conduct for Wives Only

When they accompany their husbands on road trips, the wives of major league baseball players must follow an unwritten code of conduct, a code socially constructed and enforced by men. This code is reflected in the way wives and ballplayers interact on airplanes and buses, and most strikingly, in the requirement that wives stay out of hotel bars where the team is staying. These interactions within a code reflecting female conformity to male dominance, and preserving male privileges, provide a lens through which we can inspect gender inequity and marital inequity, including what can fairly be called institutionalized adultery. We always talk about the unwritten rule book of being a baseball wife. We have our own rules. There's these unwritten rules that you do and you don't do. That's why everybody thinks that every wife should have to go into the minor league system, and not straight into the big leagues. —Marsha     

Sociopolitical Development and Vocational Expectations Among Lower Socioeconomic Status Adolescents of Color

The well‐documented aspiration‐expectation gap refers to lower socioeconomic status (SES) adolescents of color expecting to attain occupations with lower pay and status than the occupations to which they aspire. Sociopolitical inequity, such as structural racism and asymmetrical access to resources, may explain this gap. This article examines the capacity to cope with sociopolitical inequity (i.e., sociopolitical development) and its relationship to vocational expectations among this population. Analyses revealed that sociopolitical development was associated with higher vocational expectations and may contribute to reducing the vocational aspiration‐expectation gap among lower SES adolescents of color. Furthermore, career counseling, guidance, and psychosocial interventions may be augmented by incorporating sociopolitical development.