To compete or not to compete? The competitiveness of South Koreans and North Korean refugees

Abstract

This paper uses experimental data to explore whether South Koreans and North Korean refugees in South Korea have systematically different preferences regarding entry into a competitive tournament. In this experiment, participants choose between two compensation schemes—piece-rate and tournament—before they solve mazes. This study finds robust evidence that South Koreans are significantly more likely to compete than North Korean refugees. Within the North Korean refugee sample, tournament entry is negatively related with former party membership in North Korea and South Korean educational experience. These findings suggest that institutions and information on ability influence preferences for competition.