Invisible Inequality Leads to Punishing the Poor and Rewarding the Rich
Hauser, OP; Kraft-Todd, G; Rand, DG; et al.Nowak, MA; Norton, MI
Date: 6 March 2019
Journal
Behavioural Public Policy
Publisher
Cambridge University Press
Publisher DOI
Abstract
Four experiments examine how lack of awareness of inequality affect behaviour towards
the rich and poor. In experiment 1, participants who became aware that wealthy individuals
donated a smaller percentage of their income switched from rewarding the wealthy to
rewarding the poor. In experiments 2 and 3, participants who played a ...
Four experiments examine how lack of awareness of inequality affect behaviour towards
the rich and poor. In experiment 1, participants who became aware that wealthy individuals
donated a smaller percentage of their income switched from rewarding the wealthy to
rewarding the poor. In experiments 2 and 3, participants who played a public goods game—
and were assigned incomes reflective of the U.S. income distribution either at random or
on merit—punished the poor (for small absolute contributions) and rewarded the rich (for
large absolute contributions) when incomes were unknown; when incomes were revealed,
participants punished the rich (for the low percentage of income contributed) and rewarded
the poor (for their high percentage). In experiment 4, participants provided with public
education contributions for five New York school districts levied additional taxes on
mostly poorer school districts when incomes were unknown, but targeted wealthier districts
when incomes were revealed. These results shed light on how income transparency shapes
preferences for equity and redistribution. We discuss implications for policy-makers.
Economics
Faculty of Environment, Science and Economy
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