Publication:
Inequality of Opportunity and Investment Choices

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dc.contributor.authorBrock, J. Michelle
dc.contributor.authorBussolo, Maurizio
dc.date.accessioned2023-09-19T18:36:11Z
dc.date.available2023-09-19T18:36:11Z
dc.date.issued2023-09-19
dc.description.abstractInequality of opportunity leads to misallocation of human capital and can affect economies via its impact on individual economic decision making. This paper studies the impact of inequality of opportunity on investment, using a laboratory experiment. The experiment randomized inequality of opportunity, then subjects chose to invest in a risky asset or savings. The results suggest that inequality of opportunity impacts investment choices only for people who are penalized by their circumstances and only once they learn the impact of inequality of opportunity on their relative position in the income distribution. This disadvantaged group invests more often and invests higher shares of their earnings than the control and advantaged groups. The fact that both inequality of opportunity and knowledge of relative position need to be present for the impact on investment to materialize points to the importance of peer effects. More broadly, the paper highlights the relevance of social preferences for understanding the effects of inequality of opportunity on individual decision making.en
dc.identifierhttp://documents.worldbank.org/curated/en/099255009192328510/IDU0f59287450b70a0463908c84082a7dff1f644
dc.identifier.doi10.1596/1813-9450-10569
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/40366
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; 10569
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectINEQUALITY OF OPPORTUNITY
dc.subjectINVESTMENT
dc.subjectRISK
dc.subjectUNFAIR INEQUALITY
dc.titleInequality of Opportunity and Investment Choicesen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleInequality of Opportunity and Investment Choices
okr.date.disclosure2023-09-19
okr.date.doiregistration2025-04-29T02:38:04.493154Z
okr.date.lastmodified2023-09-19T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099255009192328510/IDU0f59287450b70a0463908c84082a7dff1f644
okr.guid099255009192328510
okr.identifier.docmidIDU-f5928745-b70a-4639-8c84-82a7dff1f644
okr.identifier.doi10.1596/1813-9450-10569
okr.identifier.doihttp://dx.doi.org/10.1596/1813-9450-10569
okr.identifier.externaldocumentum34164644
okr.identifier.internaldocumentum34164644
okr.identifier.reportWPS10569
okr.import.id1814
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099255009192328510/pdf/IDU0f59287450b70a0463908c84082a7dff1f644.pdfen
okr.region.geographicalSouth Asia
okr.sectorSocial Protection
okr.themeSocial Safety Nets,Gender,Human Development and Gender,Data Development and Capacity Building,Social Protection,Social Development and Protection,Public Sector Management,Social Insurance and Pensions,Data production, accessibility and use,Social protection delivery systems
okr.topicPoverty Reduction::Inequality
okr.topicMacroeconomics and Economic Growth::Economic Investment & Savings
okr.topicPoverty Reduction::Equity and Development
okr.unitOffice of the Chief Economist (SARCE)
relation.isAuthorOfPublicationd0039343-97ad-5806-88d5-81b58fee8116
relation.isAuthorOfPublication.latestForDiscoveryd0039343-97ad-5806-88d5-81b58fee8116
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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