Arbeitspapier

The tradeoff between redistribution and effort: Evidence from the field and from the lab

Building on a theoretical model we test the hypothesis that effort choices and preferences for redistribution are simultaneously determined. Using cross-country panel data from the World Value Survey, we find that it is important to model preferences for redistribution and effort choices simultaneously. While respondents with stronger preferences for redistribution tend to have smaller incentives to engage in effort, 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.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 3808

Classification
Wirtschaft
Multiple or Simultaneous Equation Models: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
Design of Experiments: Laboratory, Individual
Personal Income, Wealth, and Their Distributions
Safety; Job Satisfaction; Related Public Policy
Subject
effort
redistribution
World Value Survey
simultaneous equation models
experiment

Event
Geistige Schöpfung
(who)
Buch, Claudia M.
Engel, Christoph
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2012

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Buch, Claudia M.
  • Engel, Christoph
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2012

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