Income Hiding and Informal Redistribution: A Lab in the Field Experiment in Senegal

Marie Boltz (), Karine Marazyan and Paola Villar
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Marie Boltz: Sciences Po - Sciences Po, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique

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Abstract: This paper estimates the hidden cost of informal redistribution in urban Senegal. It is based on a lab-in-the-field experiment combined with a small-scale randomized controlled trial. We show that two-thirds of the experiment participants are ready to forgo up to 14% of their lab gains to keep them private. When they are given the opportunity to hide, they decrease by 27% the share of gains they transfer to kin and increase health and personal expenses. This is the first paper to identify the individual cost of informal redistribution and to relate it to real-life resource-allocation decisions in a controlled setting.

Keywords: lab experiment in the field; Sub-Saharan Africa; informal redistribution; income observability; intra-family resource allocations (search for similar items in EconPapers)
Date: 2016-09
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01157710v2
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Related works:
Journal Article: Income hiding and informal redistribution: A lab-in-the-field experiment in Senegal (2019)
Working Paper: Income hiding and informal redistribution: A lab-in-the-field experiment in Senegal (2019)
Working Paper: Income hiding and informal redistribution: A lab-in-the-field experiment in Senegal (2019)
Working Paper: Income Hiding and Informal Redistribution: A Lab-in-the-Field Experiment in Senegal (2017)
Working Paper: Income Hiding and Informal Redistribution: A Lab in the Field Experiment in Senegal (2016)
Working Paper: Income Hiding and Informal Redistribution: A Lab in the Field Experiment in Senegal (2016)
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