Effort and Redistribution: Better Cousins Than One Might Have Thought

Publication Type  Preprints
Author  Claudia M. Buch, Christoph Engel
Year of Publication  2012
Issue  2012/10
Abstract  We use survey and experimental data to explore how effort choices and preferences for redis-tribution are linked. Under standard preferences, redistribution would reduce effort. This is different with social preferences. Using data from the World Value Survey, we find that respondents with stronger preferences for redistribution tend to have weaker incentives to engage in effort, but that the reverse does not hold true. Using a lab experiment, we show that redistribution choices even increase in imposed effort. Those with higher ability are willing to help the needy if earning income becomes more difficult for everybody.
Publisher  Max Planck Institute for Research on Collective Goods
Place Published  Bonn
URL  http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2046505
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Keywords  Redistribution, experiment, Effort, simultaneous equation models, survey data
JEL-Codes  C91, C31, D31, J28