Meta-Analysis of Distributional Preferences

Abstract We conduct a meta-analysis of distributional preferences, examining 297 estimates of sensitivity to inequality from 41 articles that structurally estimate the Fehr and Schmidt (1999) model. Our analysis indicates that individuals are inequality averse: mean sensitivity to disadvantageous and advantageous inequality are, respectively, 0.533 and 0.326. We also uncover systematic heterogeneity: aversion to advantageous (disadvantageous) inequality is smaller (larger) in strategic environments. Finally, we examine 98 estimates of altruism and attitude towards equity versus efficiency from 17 studies structurally estimating the Andreoni and Miller (2002) model. The representative individual displays Cobb–Douglas preferences with roughly 1/3 weight on others’ earnings.