When Income Depends on Performance and Luck: The Effects of Culture and Information on Giving

Abstract

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.