When Income Depends on Performance and Luck: The Effects of Culture and Information on Giving
39 Pages Posted: 13 Jun 2015 Last revised: 4 May 2018
Date Written: January 15, 2018
We study how giving depends on income and luck, and how culture and information about the determinants of others’ income affect this relationship. Our data come from an experiment conducted in two countries, the US and Spain – each of which have different beliefs about how income inequality arises. We find that when individuals are informed about the determinants of income, there are no cross-cultural differences in giving. When uninformed, however, Americans give less than the Spanish. This difference persists even after controlling for beliefs, personal characteristics, and values.
Keywords: individual giving, information, culture, beliefs, laboratory experiment
JEL Classification: C91, D64, D83
Suggested Citation: Suggested Citation