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An Egalitarian System Breeds Generosity: The Impact Of Redistribution Procedures On Pro-Social Behavior

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  • YOHANES E. RIYANTO
  • JIANLIN ZHANG

Abstract

type="main" xml:id="ecin12090-abs-0001"> In a meritocratic system, people are compensated on the basis of their individual ability, whereas in an egalitarian system people are equally compensated. Essentially, in the latter system high performers are taxed and subsidize underperformers. Would differences in income redistribution procedures affect people's pro-social behavior? In experiments, we found that people are more generous toward strangers in an egalitarian treatment than in a meritocratic treatment. Interestingly, being taxed does not reduce the generosity of high performers, whereas being subsidized significantly increases the generosity of low performers. ( JEL C91 , D63 , D64)

Suggested Citation

  • Yohanes E. Riyanto & Jianlin Zhang, 2014. "An Egalitarian System Breeds Generosity: The Impact Of Redistribution Procedures On Pro-Social Behavior," Economic Inquiry, Western Economic Association International, vol. 52(3), pages 1027-1039, July.
    • Handle: RePEc:bla:ecinqu:v:52:y:2014:i:3:p:1027-1039
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    More about this item

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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