Preferences for Reforms: Endowments vs. Beliefs
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Summary:
Are preferences for reforms driven by individuals’ own endowments or beliefs? To address this question, we conducted a cross-country survey on people’s opinions on employment protection legislation—an area where reform has proven to be difficult and personal interests are at stake. We find that individuals’ beliefs matter more than their own endowments and personal pay-offs. A randomized information treatment confirms that beliefs explain views about reform, but beliefs can change with new information. Our results are robust to several robustness tests, including to alternative estimation techniques and samples.
Series:
Working Paper No. 2022/033
Subject:
Employment protection Labor Labor force Labor markets Population and demographics
Frequency:
regular
English
Publication Date:
February 18, 2022
ISBN/ISSN:
9798400201295/1018-5941
Stock No:
WPIEA2022033
Pages:
49
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