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

Author

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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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    File URL: http://hdl.handle.net/10.1111/ecin.2014.52.issue-3
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    Cited by:

    1. Li, Jingping & Cheo, Roland & Xiao, Erte, 2020. "The effect of voice on indirect reciprocity: Results from the lab," Economics Letters, Elsevier, vol. 189(C).
    2. Batsaikhan, Mongoljin & He, Tai-Sen & Li, Yupeng, 2021. "Accents, group identity, and trust behaviors: Evidence from Singapore," China Economic Review, Elsevier, vol. 70(C).
    3. Sandro Casal & Veronika Grimm & Simeon Schächtele, 2019. "Taxation with Mobile High-Income Agents: Experimental Evidence on Tax Compliance and Equity Perceptions," Games, MDPI, vol. 10(4), pages 1-29, October.

    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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