Inequality reduction and cooperation: Injection of additional resources

Abhijit Ramalingam and Brock Stoddard

Economics Letters, 2024, vol. 237, issue C

Abstract: We experimentally examine if reductions in inequality that do not lower the endowments of the rich raise contributions to public goods in formerly unequal groups. Even injections of additional resources directed to the poor fail to raise cooperation to levels observed in groups that were always equal and have fewer resources. Our results suggest that the poor mimic the unchanging selfish behaviour of the rich, and divert resources to private consumption.

Keywords: Inequality reduction; Income transfers; Injection of resources; Cooperation; Public goods; Experiment (search for similar items in EconPapers)
JEL-codes: C91 C92 D31 D63 H41 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:237:y:2024:i:c:s0165176524001502

DOI: 10.1016/j.econlet.2024.111667

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