Effort and Redistribution: Better Cousins Than One Might Have Thought
Claudia M. Buch
University of Tuebingen - Faculty of Economics and Business Administration
Max Planck Institute for Research on Collective Goods; University of Bonn - Faculty of Law & Economics; Universität Osnabrück - Faculty of Law
MPI Collective Goods Preprint, No. 2012/10
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.
Number of Pages in PDF File: 50
Keywords: Effort, redistribution, survey data, simultaneous equation models, experiment
JEL Classification: C91, C31, D31, J28working papers series
Date posted: April 28, 2012 ; Last revised: March 6, 2013
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