The poverty-assistance paradox

Béla Janky and Dániel Varga

Economics Letters, 2013, vol. 120, issue 3, 447-449

Abstract: We present a model of preferences on welfare transfers, which incorporates the recipient’s wealth as a signal of needs and deservingness. We show that a paradox may arise: the poorer the recipient is, the less transfer he/she will get. Implications might include the negative impact of targeting assistance to the poorest on public support for welfare.

Keywords: Welfare preferences; Social preferences; Welfare transfers (search for similar items in EconPapers)
JEL-codes: H8 I3 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:120:y:2013:i:3:p:447-449

DOI: 10.1016/j.econlet.2013.06.003

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