The Tradeoff Between Redistribution and Effort: Evidence from the Field and from the Lab
AbstractBuilding on a theoretical model we test the hypothesis that effort choices and preferences for redistribution are simultaneously determined. Using cross-country panel data from the World Value Survey, we find that it is important to model preferences for redistribution and effort choices simultaneously. While respondents with stronger preferences for redistribution tend to have smaller incentives to engage in effort, the reverse does not hold true. Using a lab experiment, we show that redistribution choices even increase in imposed effort. Those with higher ability are willing to help the needy if earning income becomes more difficult for everybody.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3808.
Date of creation: 2012
Date of revision:
effort; redistribution; World Value Survey; simultaneous equation models; experiment;
Other versions of this item:
- Claudia M. Buch & Christoph Engel, 2012. "The Tradeoff between Redistribution and effort: Evidence from the Field and from the Lab," IAW Discussion Papers 81, Institut für Angewandte Wirtschaftsforschung (IAW).
- C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
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