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

See all articles by Pedro Rey-Biel

Pedro Rey-Biel

Autonomous University of Barcelona

Roman M. Sheremeta

Case Western Reserve University

Neslihan Uler

University of Michigan at Ann Arbor

Date Written: January 15, 2018

Abstract

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

Rey-Biel, Pedro and Sheremeta, Roman M. and Uler, Neslihan, When Income Depends on Performance and Luck: The Effects of Culture and Information on Giving (January 15, 2018). Available at SSRN: https://ssrn.com/abstract=2617382 or http://dx.doi.org/10.2139/ssrn.2617382

Pedro Rey-Biel

Autonomous University of Barcelona

Plaça Cívica
Cerdañola del Valles
Barcelona, Barcelona 08193
Spain

Roman M. Sheremeta (Contact Author)

Case Western Reserve University ( email )

10900 Euclid Ave.
Cleveland, OH 44106
United States

Neslihan Uler

University of Michigan at Ann Arbor ( email )

500 S. State Street
Ann Arbor, MI 48109
United States

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