Having higher income does not increase the tendency to believe that income is deserved due to effort; in the case of health, higher self reported state of health seems to increase the tendency to associate bad health with bad habits & lifestyle choices

Merit or luck - An interpretation of people’s beliefs from an economic perspective. Karen Høgholen. May 11th 2018, Master of Philosophy in Economics, Department of Economics, University of Oslo, https://www.duo.uio.no/bitstream/handle/10852/63119/7/H-gholen-Karen.pdf

Abstract: This thesis studies the tendency people seem to have to belittle the role of luck in life outcomes, especially in the aftermath of success. Translating high income and high state of health to reflect sings of success, I analyse whether having high income or high state of health affects the proneness to believe, that income or health is achieved mainly trough own actions rather than luck. Beliefs around luck are noted to be affecting preferences over redistribution, and this aspect is explored by investigating the relationship between beliefs about societal versus individual responsibility over drug addiction problems. Ordered and binary logistic regression models are constructed to inspect the relationship between beliefs and belief determining predictors, utilising data from a Norwegian survey scanning people’s opinions around drug addiction and responsibility. The main findings suggest that having higher income does not significantly increase the tendency to believe that income is deserved due to effort. Whereas in the case of health, higher self reported state of health seems to increase the tendency to associate bad health with bad habits and lifestyle choices. For the aspect of beliefs about redistribution, it seems like the more the cause of an addiction is related to individual responsibility, the higher is the tendency to think that the addiction problem remains to be solved by the individual himself, rather than being something the society should be responsible for. The role of beliefs in economic theory in general, and what implications beliefs around luck and control have in a policy context is discussed. Parts of an economic model of belief forming mechanisms by Benabou and Tirole (2006), is also presented as an inspiration for the overall themes discussed in this thesis.