An egalitarian system breeds generosity: The impact of redistribution procedures on pro-social behavior

Yohanes E. Riyanto, Jianlin Zhang

Research output: Contribution to journalArticlepeer-review

7 Citations (Scopus)

Abstract

In a meritocratic system, people are compensated on the basis of their individual ability, whereas in an egalitarian system people are equally compensated. Essentially, in the latter system high performers are taxed and subsidize underperformers. Would differences in income redistribution procedures affect people's pro-social behavior? In experiments, we found that people are more generous toward strangers in an egalitarian treatment than in a meritocratic treatment. Interestingly, being taxed does not reduce the generosity of high performers, whereas being subsidized significantly increases the generosity of low performers.

Original languageEnglish
Pages (from-to)1027-1039
Number of pages13
JournalEconomic Inquiry
Volume52
Issue number3
DOIs
Publication statusPublished - Jul 2014
Externally publishedYes

ASJC Scopus Subject Areas

  • General Business,Management and Accounting
  • Economics and Econometrics

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