Sharing One's Fortune? An Experimental Study on Earned Income and Giving

18 Pages Posted: 26 Nov 2013

See all articles by Mirco Tonin

Mirco Tonin

Free University of Bozen-Bolzano; IZA; CESifo (Center for Economic Studies and Ifo Institute)

Michael Vlassopoulos

University of Southampton; IZA -- Institute for the Study of Labor

Multiple version iconThere are 2 versions of this paper

Date Written: November 25, 2013

Abstract

In this paper we investigate the relationship between earnings and charitable giving. We set up a real effort experiment, in which subjects enter data in four one-hour occasions and are paid a piece rate. From the second occasion onwards, we randomly assign half of the subjects to a treatment with higher piece rates. At the end we ask subjects whether they want to donate a share of their earnings to a charity of their choice. We find that, despite large differences in earnings due to the different piece rates, subjects receiving the higher piece rate are actually less likely to give, and that givers in the two groups give the same share of their total earnings. Charities receive the same average donation from members of the two groups indicating that subjects in this experiment do not treat charitable giving as a normal good.

Keywords: charity, earnings, buck, effort, windfall

JEL Classification: D640, J390

Suggested Citation

Tonin, Mirco and Vlassopoulos, Michael, Sharing One's Fortune? An Experimental Study on Earned Income and Giving (November 25, 2013). CESifo Working Paper Series No. 4475, Available at SSRN: https://ssrn.com/abstract=2359397

Mirco Tonin (Contact Author)

Free University of Bozen-Bolzano ( email )

Sernesiplatz 1
Bozen-Bolzano, BZ 39100
Italy

IZA ( email )

P.O. Box 7240
Bonn, D-53072
Germany

HOME PAGE: http://www.iza.org/en/webcontent/personnel/photos/index_html?key=3339

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Michael Vlassopoulos

University of Southampton ( email )

University Rd.
Southampton SO17 1BJ, Hampshire SO17 1LP
United Kingdom

IZA -- Institute for the Study of Labor ( email )

Bonn

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