Wednesday, January 9, 2019

More than 30% in individuals' perceived income justice can be attributed to genetic variation, the rest is mostly driven by idiosyncratic environmental effects; no evidence for gene-environment interactions

Neugart, Michael and Yildirim, Selen, What Determines Perceived Income Justice: Evidence from the German TwinLife Study (November 23, 2018). https://ssrn.com/abstract=3289604

Abstract: Whether individuals perceive their income as being fair has far reaching consequences in the labor market and beyond. Yet we know little on the determinants of variation in perceived income justice across individuals. In this paper we ask whether genes can explain parts of the variation. To this end, we analyze data from the German TwinLife study. We find that more than 30% in individuals' perceived income justice can be attributed to genetic variation. The rest is mostly driven by idiosyncratic environmental effects. We, furthermore, do not find evidence for gene-environment interaction effects.

Keywords: perceived income justice, twins, behavioral genetics
JEL Classification: D10, D90