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The "prospect of upward mobility" (POUM) hypothesis formalised by Benabou and Ok (2001a) finds explicit assumptions … provided the mobility process is concave in expectations, redistribution policies are expected to last for a sufficiently long … period and individuals are not too risk averse. This paper tests the POUM hypothesis by means of a within subjects experiment …
Persistent link: https://www.econbiz.de/10013319666
The “prospect of upward mobility” (POUM) hypothesis formalised by Benabou and Ok (2001a) finds explicit assumptions … provided the mobility process is concave in expectations, redistribution policies are expected to last for a sufficiently long … period and individuals are not too risk averse. This paper tests the POUM hypothesis by means of a within subjects experiment …
Persistent link: https://www.econbiz.de/10005822040
, uncertainty, rising income and wealth inequalities, decreasing mobility) and demand for redistribution. Our context is Hungary … welfare. According to the POUM hypothesis, we also found a negative correlation between expected intergenerational mobility … and individual support for redistribution. People perceive their relative income position, their relative mobility and …
Persistent link: https://www.econbiz.de/10011560839
individuals' payoffs are interdependent to those where payoffs are independent. In a laboratory experiment, we study whether the … resulting inequality is perceived differently and how this affects redistribution. Across treatments, we compare a spectator …'s redistribution of two workers' earnings. If workers do not compete in a zero-sum setting, average redistribution decreases. In a …
Persistent link: https://www.econbiz.de/10013175708
Leaky-bucket transactions can be regarded as a generalization of the transfer principle allowing for transaction costs. In its most rudimentary form, leaky-bucket transactions trace out the maximum leakage of transaction costs such that a transfer still pays at the margin. Yet - to pay at the...
Persistent link: https://www.econbiz.de/10010296229
We use a highly-controlled laboratory experiment to study the causal impact of income decreases on redistribution …-personal decreases create dissatisfaction for an individual, that person may support redistribution policies that compensate him or her … experience decreasing wages. While many studies examine the effect of income inequality on redistribution decisions, this is the …
Persistent link: https://www.econbiz.de/10012825124
Leaky-bucket transactions can be regarded as income transfers allowing for transaction costs. In its most rudimentary form, leaky-bucket transactions trace out the maximum "leakage" of transaction costs before income inequality is exacerbated, or before a welfare loss is experienced. This notion...
Persistent link: https://www.econbiz.de/10010296242
This paper provides a comparative experimental study of risky prospects (lotteries) and income distributions. The experimental design consisted of multi-outcome lotteries and n-dimensional income distributions arranged in the shapes of ten distributions which were judged in terms of ratings and...
Persistent link: https://www.econbiz.de/10010296309
This paper investigates distributive justice using a fourfold experimental design : The ignorance and the risk scenarios are combined with the self-concern and the umpire modes. We study behavioral switches between self-concern and umpire mode and investigate the goodness of ten standards of...
Persistent link: https://www.econbiz.de/10010296310
Using an experiment with material incentives, this paper investigates the violation of composite dominance … dominance. Moreover, we test tail independence. The experiment consists of two treatments, a self-concern mode (in which each …
Persistent link: https://www.econbiz.de/10010296311