Working Paper: NBER ID: w23229
Authors: James Andreoni; Nikos Nikiforakis; Jan Stoop
Abstract: The growing concentration of resources among the rich has re-ignited a discussion about whether the rich are more selfish than others. While many recent studies show the rich behaving less pro-socially, endogeneity and selection problems prevent safe inferences about differences in social preferences. We present new evidence from a natural field experiment in which we “misdeliver” envelopes to rich and poor households in a Dutch city, varying their contents to identify motives for returning them. Our raw data indicate the rich behave more pro-socially. Controlling for pressures associated with poverty and the marginal utility of money, however, we find no difference in social preferences. The primary distinction between rich and poor is simply that the rich have more money.
Keywords: prosocial behavior; wealth; social preferences; natural field experiment; inequality
JEL Codes: C93; D63; D64
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Financial pressures faced by the poor (I32) | Ability to act prosocially (D64) |
| Wealth (D31) | Prosocial behavior (D64) |
| Rich individuals (D31) | Return rates of misdelivered envelopes (L87) |
| Poor individuals (I32) | Return rates of misdelivered envelopes (L87) |
| Prosocial intentions (D64) | Prosocial behavior (D64) |
| Financial pressures (G32) | Prosocial behavior (D64) |