The Tradeoff between Redistribution and effort: Evidence from the Field and from the Lab

Claudia Buch and Christoph Engel

No 81, IAW Discussion Papers from Institut für Angewandte Wirtschaftsforschung (IAW)

Abstract: 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.

Keywords: Effort; redistribution; World Value Survey; simultaneous equation models; experiment (search for similar items in EconPapers)
JEL-codes: C31 C91 D31 J28 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2012-04
New Economics Papers: this item is included in nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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http://www.iaw.edu/RePEc/iaw/pdf/iaw_dp_81.pdf (application/pdf)

Related works:
Working Paper: The Tradeoff Between Redistribution and Effort: Evidence from the Field and from the Lab (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:iaw:iawdip:81

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