Solidarity among the poor |
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| Authors: | Angela C.M. de Oliveira Catherine C. Eckel Rachel T.A. Croson |
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| Affiliation: | 1. University of Massachusetts Amherst, Department of Resource Economics, 203 Stockbridge Hall, 80 Campus Center Way, Amherst, MA 01003, USA;2. Texas A&M University, Department of Economics, 4228 TAMU, College Station, TX 77843, USA;3. University of Texas, Arlington, Dean, College of Business, 701 S. West Street, Room 334, Box 19377, Arlington, TX 76019, USA |
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| Abstract: | We conduct a field experiment with low-income subjects in Dallas, Texas. We examine voluntary, informal risk sharing using a visual representation of the solidarity game developed for low-literacy populations. We find substantially more ‘fixed gift to loser’ behavior and less ‘egotistical’ behavior than in previous studies. Individuals who display ‘egotistical’ behavior are more risk tolerant. The amount of the conditional gifts is positively related to age, income, and connection to the community. However, trust and empathy, which are commonly discussed as drivers for solidarity, are not significantly related to the amount given. |
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| Keywords: | C93 D81 |
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