(2017-01) Rey-Biel, Pedro; Sheremeta, Roman M.; Uler, Neslihan
We study how giving depends on income and luck, and how culture and
information about the determinants of others’ income affect this relationship. Our
data come from an experiment conducted in two countries, the US and Spain, that
have different beliefs about how income inequality arises. We find that when
individuals are informed about the determinants of income, there are no cross-cultural
differences in giving. However, when uninformed, Americans give less
than the Spanish, and this difference persists even after controlling for beliefs,
personal characteristics, and values.
