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Sharing One's Fortune? An Experimental Study on Earned Income and Giving

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  • Mirco Tonin
  • Michael Vlassopoulos

Abstract

In this paper we investigate the relationship between earnings and charitable giving. We set up a real effort experiment, in which subjects enter data in four one-hour occasions and are paid a piece rate. From the second occasion onwards, we randomly assign half of the subjects to a treatment with higher piece rates. At the end we ask subjects whether they want to donate a share of their earnings to a charity of their choice. We find that, despite large differences in earnings due to the different piece rates, subjects receiving the higher piece rate are actually less likely to give, and that givers in the two groups give the same share of their total earnings. Charities receive the same average donation from members of the two groups indicating that subjects in this experiment do not treat charitable giving as a normal good.

Suggested Citation

  • Mirco Tonin & Michael Vlassopoulos, 2013. "Sharing One's Fortune? An Experimental Study on Earned Income and Giving," CESifo Working Paper Series 4475, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_4475
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    References listed on IDEAS

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    Cited by:

    1. David Fielding & Stephen Knowles, 2015. "Can you spare some change for charity? Experimental evidence on verbal cues and loose change effects in a Dictator Game," Experimental Economics, Springer;Economic Science Association, vol. 18(4), pages 718-730, December.
    2. Mirco Tonin & Michael Vlassopoulos, 2015. "Corporate Philanthropy and Productivity: Evidence from an Online Real Effort Experiment," Management Science, INFORMS, vol. 61(8), pages 1795-1811, August.
    3. Pedro Rey-Biel & Roman Sheremeta & Neslihan Uler, 2015. "When Income Depends on Performance and Luck: The Effects of Culture and Information on Giving," Working Papers 15-12, Chapman University, Economic Science Institute.
    4. Fehr, Dietmar, 2015. "Is increasing inequality harmful? Experimental evidence," Discussion Papers, Research Unit: Market Behavior SP II 2015-209, Social Science Research Center Berlin (WZB).
    5. repec:eee:gamebe:v:107:y:2018:i:c:p:123-134 is not listed on IDEAS

    More about this item

    Keywords

    charity; earnings; buck; effort; windfall;

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • J39 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Other

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