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Inequality reduction and cooperation: Injection of additional resources

Author

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  • Ramalingam, Abhijit
  • Stoddard, Brock V.

Abstract

We experimentally examine if reductions in inequality that do not lower the endowments of the rich raise contributions to public goods in formerly unequal groups. Even injections of additional resources directed to the poor fail to raise cooperation to levels observed in groups that were always equal and have fewer resources. Our results suggest that the poor mimic the unchanging selfish behaviour of the rich, and divert resources to private consumption.

Suggested Citation

  • Ramalingam, Abhijit & Stoddard, Brock V., 2024. "Inequality reduction and cooperation: Injection of additional resources," Economics Letters, Elsevier, vol. 237(C).
  • Handle: RePEc:eee:ecolet:v:237:y:2024:i:c:s0165176524001502
    DOI: 10.1016/j.econlet.2024.111667
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    More about this item

    Keywords

    Inequality reduction; Income transfers; Injection of resources; Cooperation; Public goods; Experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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