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

Author: Alberto And Nicola Alesina, Alberto And Paola Alesina, Antonio Cabrales, Christoph Engel, Claudia M. Buch, Daniele Checchi, Finally, Liema And Yoram Davidovitz, Ruben Durante, Sascha O Becker, Steven R Beckman
Publisher: Elsevier BV

ABOUT BOOK

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

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