Why Higher Real Wages May Reduce Altruism for the Poor
The non-poor need to have information on the existence and the cause of the plight of the poor for redistribution to be a public good. Since gaining this information takes time, the full price of helping the poor includes both the money cost and the time involved in empathizing. Over the last century, the higher real incomes of the poor have reduced the manifestations of poverty. When poverty is less obvious, the non-poor are not as aware of poverty. This article also discusses when redistribution is most likely to be a public good.
Volume (Year): 28 (2002)
Issue (Month): 3 (Summer)
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NBER Working Papers
1715, National Bureau of Economic Research, Inc.
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