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(Bad) Luck or (Lack of) Effort?: Comparing Social Sharing Norms between US and Europe

Author

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  • Pedro Rey-Biel

    (Universitat Autònoma de Barcelona, Departmento de Economía e Historia Económica)

  • Roman M. Sheremeta

    (Argyros School of Business and Economics, Chapman University, USA)

  • Neslihan Uler

    (Research Center for Group Dynamics, Institute for Social Research, University of Michigan)

Abstract

We compare the determinants of individual giving between two countries, Spain and the US, which differ in their redistribution policies and their beliefs over the causes of poverty. By varying the information about the determinants of income, we find that, although overall giving is similar in both countries when subjects know the actual role of luck and effort, Spanish subjects give more when they are uninformed compared to American subjects. Using elicited beliefs, we find that this is due to Spanish subjects associating poverty with bad luck and Americans believing that low performers did not work hard enough.

Suggested Citation

  • Pedro Rey-Biel & Roman M. Sheremeta & Neslihan Uler, 2011. "(Bad) Luck or (Lack of) Effort?: Comparing Social Sharing Norms between US and Europe," Working Papers 11-11, Chapman University, Economic Science Institute.
    • Handle: RePEc:chu:wpaper:11-11
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Mitesh Kataria & Natalia Montinari, 2012. "Risk, Entitlements and Fairness Bias: Explaining Preferences for Redistribution in Multi-person Setting," Jena Economics Research Papers 2012-061, Friedrich-Schiller-University Jena.
    2. Tonin, Mirco & Vlassopoulos, Michael, 2017. "Sharing one’s fortune? An experimental study on earned income and giving," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 66(C), pages 112-118.
    3. Neher, Frank, 2012. "Preferences for Redistribution around the World," Working Papers 26/2012, Universidade Portucalense, Centro de Investigação em Gestão e Economia (CIGE).
    4. Balafoutas, Loukas & Kocher, Martin G. & Putterman, Louis & Sutter, Matthias, 2013. "Equality, equity and incentives: An experiment," European Economic Review, Elsevier, vol. 60(C), pages 32-51.
    5. Neher, Frank, 2012. "Preferences for redistribution around the world," Discussion Papers 2012/2, Free University Berlin, School of Business & Economics.
    6. Stefania Bortolotti & Ivan Soraperra & Matthias Sutter & Claudia Zoller, 2017. "Too Lucky to be True - Fairness Views under the Shadow of Cheating," CESifo Working Paper Series 6563, CESifo.
    7. de Oliveira, Angela C.M. & Smith, Alexander & Spraggon, John, 2017. "Reward the lucky? An experimental investigation of the impact of agency and luck on bonuses," Journal of Economic Psychology, Elsevier, vol. 62(C), pages 87-97.
    8. Blouin, Arthur & Mani, Anandi & Mukand, Sharun W. & Sgroi, Daniel, 2024. "The Meritocratic Illusion: Inequality and the Cognitive Basis of Redistribution," CAGE Online Working Paper Series 717, Competitive Advantage in the Global Economy (CAGE).
    9. Blouin, Arthur & Mani, Anandi & Mukand, Sharun W., 2024. "The Meritocratic Illusion Inequality and the Cognitive Basis of Redistribution," The Warwick Economics Research Paper Series (TWERPS) 1509, University of Warwick, Department of Economics.

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    More about this item

    Keywords

    individual giving; cross-cultural; beliefs; laboratory experiment;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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