Why North Korean Refugees are Reluctant to Compete: The Roles of Cognitive Ability

Abstract

The study compares the competitiveness of three Korean groups raised in different institutional environments: South Korea, North Korea, and China. Laboratory experiments reveal that North Korean refugees are less likely to participate in competitive tournaments than South Koreans and Korean-Chinese immigrants. Analysis using a choice model with probability weighting suggests that lower cognitive ability may lead to lower expected performance, more pessimistic beliefs, and greater aversion to competition.