Is Informal Redistribution Costly? Evidence from a Lab-in-the-Field Experiment in Senegal
In Sub-Saharan Africa, individuals frequently transfer a substantial share of their resources to members of their social networks. Social pressure to redistribute, however, can induce disincentive effects on resource allocation decisions. This paper measures and characterizes the costs of redistributive pressure by estimating individuals’ willingness to pay (WTP) to hide their income. The study estimates a social tax due to informal redistribution of 10 percent. Moreover, it shows that individuals are willing to escape from the redistributive pressure exerted mainly by extended family members.
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| Format: | Journal Article biblioteca |
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Published by Oxford University Press on behalf of the World Bank
2020-02
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| Subjects: | INCOME OBSERVABILITY, REDISTRIBUTION, EXTENDED FAMILY, WILLINGNESS TO PAY, INCOME DISTRIBUTION, INFORMAL ECONOMY, MIGRATION, |
| Online Access: | http://hdl.handle.net/10986/36151 |
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dig-okr-10986361512023-08-28T18:57:05Z Is Informal Redistribution Costly? Evidence from a Lab-in-the-Field Experiment in Senegal Botlz, Marie Marazyan, Karine Villar, Paola INCOME OBSERVABILITY REDISTRIBUTION EXTENDED FAMILY WILLINGNESS TO PAY INCOME DISTRIBUTION INFORMAL ECONOMY MIGRATION In Sub-Saharan Africa, individuals frequently transfer a substantial share of their resources to members of their social networks. Social pressure to redistribute, however, can induce disincentive effects on resource allocation decisions. This paper measures and characterizes the costs of redistributive pressure by estimating individuals’ willingness to pay (WTP) to hide their income. The study estimates a social tax due to informal redistribution of 10 percent. Moreover, it shows that individuals are willing to escape from the redistributive pressure exerted mainly by extended family members. 2021-08-17T18:35:03Z 2021-08-17T18:35:03Z 2020-02 Journal Article Article de journal Artículo de revista World Bank Economic Review 1564-698X http://hdl.handle.net/10986/36151 World Bank Economic Review CC BY-NC-ND 3.0 IGO World Bank http://creativecommons.org/licenses/by-nc-nd/3.0/igo application/pdf Published by Oxford University Press on behalf of the World Bank |
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| topic |
INCOME OBSERVABILITY REDISTRIBUTION EXTENDED FAMILY WILLINGNESS TO PAY INCOME DISTRIBUTION INFORMAL ECONOMY MIGRATION INCOME OBSERVABILITY REDISTRIBUTION EXTENDED FAMILY WILLINGNESS TO PAY INCOME DISTRIBUTION INFORMAL ECONOMY MIGRATION |
| spellingShingle |
INCOME OBSERVABILITY REDISTRIBUTION EXTENDED FAMILY WILLINGNESS TO PAY INCOME DISTRIBUTION INFORMAL ECONOMY MIGRATION INCOME OBSERVABILITY REDISTRIBUTION EXTENDED FAMILY WILLINGNESS TO PAY INCOME DISTRIBUTION INFORMAL ECONOMY MIGRATION Botlz, Marie Marazyan, Karine Villar, Paola Is Informal Redistribution Costly? Evidence from a Lab-in-the-Field Experiment in Senegal |
| description |
In Sub-Saharan Africa, individuals frequently transfer a substantial share of their resources to members of their social networks. Social pressure to redistribute, however, can induce disincentive effects on resource allocation decisions. This paper measures and characterizes the costs of redistributive pressure by estimating individuals’ willingness to pay (WTP) to hide their income. The study estimates a social tax due to informal redistribution of 10 percent. Moreover, it shows that individuals are willing to escape from the redistributive pressure exerted mainly by extended family members. |
| format |
Journal Article |
| topic_facet |
INCOME OBSERVABILITY REDISTRIBUTION EXTENDED FAMILY WILLINGNESS TO PAY INCOME DISTRIBUTION INFORMAL ECONOMY MIGRATION |
| author |
Botlz, Marie Marazyan, Karine Villar, Paola |
| author_facet |
Botlz, Marie Marazyan, Karine Villar, Paola |
| author_sort |
Botlz, Marie |
| title |
Is Informal Redistribution Costly? Evidence from a Lab-in-the-Field Experiment in Senegal |
| title_short |
Is Informal Redistribution Costly? Evidence from a Lab-in-the-Field Experiment in Senegal |
| title_full |
Is Informal Redistribution Costly? Evidence from a Lab-in-the-Field Experiment in Senegal |
| title_fullStr |
Is Informal Redistribution Costly? Evidence from a Lab-in-the-Field Experiment in Senegal |
| title_full_unstemmed |
Is Informal Redistribution Costly? Evidence from a Lab-in-the-Field Experiment in Senegal |
| title_sort |
is informal redistribution costly? evidence from a lab-in-the-field experiment in senegal |
| publisher |
Published by Oxford University Press on behalf of the World Bank |
| publishDate |
2020-02 |
| url |
http://hdl.handle.net/10986/36151 |
| work_keys_str_mv |
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