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The poverty-assistance paradox

  • Janky, Béla
  • Varga, Dániel
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    We present a model of preferences on welfare transfers, which incorporates the recipient’s wealth as a signal of needs and deservingness. We show that a paradox may arise: the poorer the recipient is, the less transfer he/she will get. Implications might include the negative impact of targeting assistance to the poorest on public support for welfare.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0165176513002760
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    Article provided by Elsevier in its journal Economics Letters.

    Volume (Year): 120 (2013)
    Issue (Month): 3 ()
    Pages: 447-449

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    Handle: RePEc:eee:ecolet:v:120:y:2013:i:3:p:447-449
    Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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    1. Roland Benabou & Jean Tirole, 2005. "Belief in a Just World and Redistributive Politics," NBER Working Papers 11208, National Bureau of Economic Research, Inc.
    2. Arnab Chatterjee & Sitabhra Sinha & Bikas K. Chakrabarti, 2007. "Economic Inequality: Is it Natural?," Papers physics/0703201, arXiv.org, revised Mar 2007.
    3. Rafael Di Tella & Juan Dubra, 2013. "Fairness and Redistribution, a comment," Documentos de Trabajo/Working Papers 1302, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
    4. Alberto Alesina & George-Marios Angeletos, 2004. "Fairness and Redistribution," NajEcon Working Paper Reviews 122247000000000306, www.najecon.org.
    5. Besley, T. & Coate, S., 1990. "Understanding Welfare Stigma: Taxpayer Resentment And Statistical Discrimination," Papers 42, Princeton, Woodrow Wilson School - Discussion Paper.
    6. Rafael Di Tella & Juan Dubra, 2010. "A note on Fairness and Redistribution," Harvard Business School Working Papers 11-059, Harvard Business School.
    7. Konow, James, 2010. "Mixed feelings: Theories of and evidence on giving," Journal of Public Economics, Elsevier, vol. 94(3-4), pages 279-297, April.
    8. Fong, Christina M. & Luttmer, Erzo F.P., 2011. "Do fairness and race matter in generosity? Evidence from a nationally representative charity experiment," Journal of Public Economics, Elsevier, vol. 95(5), pages 372-394.
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