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Income Hiding and Informal Redistribution: A Lab in the Field Experiment in Senegal

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Listed:
  • Marie Boltz

    () (IEP Paris - Sciences Po Paris - Institut d'études politiques de Paris, PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Karine Marazyan

    (IEDES)

  • Paola Villar

    (INED - Institut national d'études démographiques, PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper estimates the hidden cost of informal redistribution in urban Senegal. It is based on a lab-in-the-field experiment combined with a small-scale randomized controlled trial. We show that two-thirds of the experiment participants are ready to forgo up to 14% of their lab gains to keep them private. When they are given the opportunity to hide, they decrease by 27% the share of gains they transfer to kin and increase health and personal expenses. This is the first paper to identify the individual cost of informal redistribution and to relate it to real-life resource-allocation decisions in a controlled setting.

Suggested Citation

  • Marie Boltz & Karine Marazyan & Paola Villar, 2016. "Income Hiding and Informal Redistribution: A Lab in the Field Experiment in Senegal," Working Papers halshs-01157710, HAL.
  • Handle: RePEc:hal:wpaper:halshs-01157710
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01157710v2
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    References listed on IDEAS

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    Cited by:

    1. Marie Boltz & Isabelle Chort, 2019. "The Risk of Polygamy and Wives’ Saving Behavior," World Bank Economic Review, World Bank Group, vol. 33(1), pages 209-230.
    2. Alistair Munro, 2018. "Intra†Household Experiments: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 134-175, February.
    3. Marie Boltz & Isabelle Chort, 2019. "The Risk of Polygamy and Wives’ Saving Behavior," World Bank Economic Review, World Bank Group, vol. 33(1), pages 209-230.

    More about this item

    Keywords

    lab experiment in the field; intra-family resource allocations; income observability; Sub-Saharan Africa; informal redistribution;

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