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When Income Depends on Performance and Luck: The Effects of Culture and Information on Giving

Author

Listed:
  • Pedro Rey-Biel

    (Universitat Autònoma de Barcelona and Barcelona GSE)

  • Roman Sheremeta

    () (Weatherhead School of Management at Case Western Reserve University and the Economic Science Institute at Chapman University)

  • Neslihan Uler

    (Institute for Social Research at the University of Michigan)

Abstract

We study how giving depends on income and luck, and how culture and information about the determinants of others’ income affect this relationship. Our data come from an experiment conducted in two countries, the US and Spain, which have different beliefs about how income inequality arises. We find no cross-cultural differences in giving when individuals are informed about the determinants of income, but when uninformed, Americans give less than Spanish. Culture and information not only affect individual giving, but also the determinants of giving and the beliefs about how income inequality arises. Beliefs partially moderate cross-cultural differences in giving.

Suggested Citation

  • 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.
  • Handle: RePEc:chu:wpaper:15-12
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    References listed on IDEAS

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    1. When Income Depends on Performance and Luck: The Effects of Culture and Information on Giving By: Pedro Rey-Biel (Universitat Autònoma de Barcelona and Barcelona GSE) ; Roman Sheremeta (Weatherhead School of Management at Case Western Reserve University
      by maximorossi in NEP-LTV blog on 2015-06-23 00:01:22

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    Cited by:

    1. 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).
    2. repec:kap:expeco:v:20:y:2017:i:4:d:10.1007_s10683-017-9516-5 is not listed on IDEAS
    3. repec:eee:gamebe:v:107:y:2018:i:c:p:123-134 is not listed on IDEAS
    4. Grimalda, Gianluca & Farina, Francesco & Schmidt, Ulrich, 2018. "Preferences for redistribution in the US, Italy, Norway: An experiment study," Kiel Working Papers 2099, Kiel Institute for the World Economy (IfW).
    5. Roman M. Sheremeta & Neslihan Uler, 2016. "The Impact of Taxes and Wasteful Government Spending on Giving," Working Papers 16-07, Chapman University, Economic Science Institute.
    6. Yamamura, Eiji & Tsutsui, Yoshiro & Ohtake, Fumio, 2018. "Altruistic and selfish motivations of charitable giving: The case of the hometown tax donation system (Furusato nozei) in Japan," MPRA Paper 86181, University Library of Munich, Germany.
    7. Konow, James & Saijo, Tatsuyoshi & Akai, Kenju, 2016. "Equity versus Equality," MPRA Paper 75376, University Library of Munich, Germany.

    More about this item

    Keywords

    individual giving; information; culture; beliefs; laboratory experiment;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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