Abstract
intrinsically more generous, but because the experimental endowment has lower real value for them. With endowments that are equivalent to their daily expenditures, the rich, the middle-class and the poor give a similar proportion of their stratum-equivalent endowment. Moreover, we find that the motivation to donate is similar across strata, where the generosity act is explained mainly by warm-glow rather than pure altruism.
| Original language | English |
|---|---|
| Place of Publication | Tilburg |
| Publisher | CentER, Center for Economic Research |
| Number of pages | 41 |
| Volume | 2019-031 |
| Publication status | Published - 5 Nov 2019 |
Publication series
| Name | CentER Discussion Paper |
|---|---|
| Volume | 2019-031 |
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Keywords
- charitable giving
- social stratification
- inequality
- social preferences
- dictator game
Cite this
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Generosity and Wealth : Experimental Evidence from Bogota Stratification. / Blanco, M.; Dalton, Patricio.
Tilburg : CentER, Center for Economic Research, 2019. (CentER Discussion Paper; Vol. 2019-031).Research output: Working paper › Discussion paper › Other research output
TY - UNPB
T1 - Generosity and Wealth
T2 - Experimental Evidence from Bogota Stratification
AU - Blanco, M.
AU - Dalton, Patricio
N1 - CentER Discussion Paper Nr. 2019-031
PY - 2019/11/5
Y1 - 2019/11/5
N2 - This paper combines laboratory experiments with a unique feature of the city of Bogota to uncover the relationship between generosity and wealth. Bogota is divided by law into six socio-economic strata which are close proxies of household wealth and income. We recruit subjects from different strata and run a series of double-blind dictator games where the recipient is the NGO Techo-Colombia, which builds transitional housing for homeless families. We identify the stratum of each subject anonymously and blindly, and match their donations with their stratum. In a first experiment we provide a fixed endowment to all participants and nd that donations are significantly increasing with wealth. However, in a second experiment, we show that this is not because the rich areintrinsically more generous, but because the experimental endowment has lower real value for them. With endowments that are equivalent to their daily expenditures, the rich, the middle-class and the poor give a similar proportion of their stratum-equivalent endowment. Moreover, we find that the motivation to donate is similar across strata, where the generosity act is explained mainly by warm-glow rather than pure altruism.
AB - This paper combines laboratory experiments with a unique feature of the city of Bogota to uncover the relationship between generosity and wealth. Bogota is divided by law into six socio-economic strata which are close proxies of household wealth and income. We recruit subjects from different strata and run a series of double-blind dictator games where the recipient is the NGO Techo-Colombia, which builds transitional housing for homeless families. We identify the stratum of each subject anonymously and blindly, and match their donations with their stratum. In a first experiment we provide a fixed endowment to all participants and nd that donations are significantly increasing with wealth. However, in a second experiment, we show that this is not because the rich areintrinsically more generous, but because the experimental endowment has lower real value for them. With endowments that are equivalent to their daily expenditures, the rich, the middle-class and the poor give a similar proportion of their stratum-equivalent endowment. Moreover, we find that the motivation to donate is similar across strata, where the generosity act is explained mainly by warm-glow rather than pure altruism.
KW - charitable giving
KW - social stratification
KW - inequality
KW - social preferences
KW - dictator game
M3 - Discussion paper
VL - 2019-031
T3 - CentER Discussion Paper
BT - Generosity and Wealth
PB - CentER, Center for Economic Research
CY - Tilburg
ER -